Consumption in Hong Kong
Hong Kong - Consumption
GDP growth loses some steam in the second quarter
A preliminary estimate showed that economic activity expanded 7.6% year-on-year in the second quarter, down from the 8.0% jump tallied in the first quarter.
The slight slowdown was predominately driven by stronger imports (Q2: +20.2% year-on-year; Q1: 18.9% yoy), which weighed on the external sector, while exports grew 18.4% in the second quarter down from Q1’s 24.8% yoy.
On the domestic front, government consumption growth eased from 7.0% in Q1 to 2.8% in the second quarter. However, both private consumption and fixed investment growth gained momentum in the second quarter: Household spending rose 6.8% (Q1: +2.1%), while gross fixed capital formation jumped 23.8% after rising 4.8% in the prior quarter.
Commenting on the latest GDP print, Ho Woei Chen, an economist at UOB, noted:
“Starting in August, the issuance of the HK$5,000 (US$643) in electronic vouchers to permanent residents and eligible immigrants aged 18 and above as announced in 2021/22 Budget will be another positive driver for private consumption recovery. The boost to the full-year GDP growth was estimated to be around 0.7 ppt. While sustained recovery in external demand, improving domestic job market and pent-up domestic demand are positive for Hong Kong’s outlook, the rebound will still be limited by strict COVID-19 safety measures and international travel restrictions as its economy is largely services-oriented.”
Hong Kong - Consumption Data
|Consumption (annual variation in %)||4.8||2.0||5.5||5.3||-1.1|
5 years of economic forecasts for more than 30 economic indicators.
Hong Kong Facts
|Bond Yield||1.82||3.38 %||Dec 31|
|Exchange Rate||7.79||-0.11 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
September 3, 2021
Retail sales grew 0.9% year-on-year in July (June: +2.9% yoy).
September 3, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) increased to 53.3 in August—the best reading since February 2014—after July's 51.3.
August 19, 2021
Consumer prices fell a seasonally-adjusted 0.10% over the previous month in July, coming in below June's flat result.
August 4, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 51.3 in July from June's 51.4.
August 2, 2021
Retail sales grew 2.8% year-on-year in June (May: +7.8% yoy).