GDP in Hong Kong
Hong Kong - GDP
Economy posts solid performance in Q2 despite slight deceleration
The economy posted a strong performance in Q2, with GDP expanding 3.8% over the same quarter of last year. Although the impressive print came in below the 4.3% increase registered in Q1, growth landed above market expectations of a 3.5% expansion. Moreover, the solid expansion was underpinned by broad-spectrum growth, a still-healthy external sector and gains in fixed investment. That said, the deceleration from Q1 was the result of a slower expansion in exports, despite exports growth posting its second-strongest quarter in more than three years. Furthermore, in response to stellar back-to-back GDP reports thus far this year, the government upgraded its growth forecasts for 2017 by 1.0 percentage point, from between 2.0%–3.0% to 3.0%–4.0%.
Domestically, the expansion in Q2 was the result of a sharp acceleration in private consumption, which grew 5.3% over the same quarter of last year (Q1: +3.9% year-on-year) in what was its strongest performance in two years. Moreover, fixed investment grew 8.0% in annual terms (Q1: +5.9% yoy) and was driven by a rebound in spending on machinery and intellectual property products, while building and construction expenditures decelerated as Hong Kong’s booming property market took a small breather from a quarter earlier. Growth in government spending, for its part, narrowly accelerated to 3.2% (Q1: +3.1% yoy).
On the external side, growth in exports of goods and services slowed to 5.0% (Q1: +8.1% yoy) in what was a still-impressive result that rode the recent pickup in global demand. Likewise, growth in imports also slowed—albeit less sharply—to 5.9% (Q1: +8.8% yoy). Consequently, the external sector’s net contribution to overall growth was a sizeable minus 1.9 percentage points (Q1: minus 1.1 percentage points).
On a quarter-on-quarter basis, Hong Kong’s economy grew a seasonally-adjusted 1.0% in Q2, which was above Q1’s 0.7% increase.
In light of the bright economic report, the government now expects the economy to grow a rate of between 3.0% and 4.0% this year. FocusEconomics Consensus Forecast panelists see GDP expanding 2.6% in 2017, which is unchanged from the previous month’s estimate. For 2018, the panel expects the economy to grow 2.2%.
Hong Kong - GDP Data
|Economic Growth (GDP, annual variation in %)||1.7||3.1||2.8||2.4||1.9|
5 years of economic forecasts for more than 30 economic indicators.
Hong Kong GDP Chart
Source: Census and Statistics Department Hong Kong and FocusEconomics calculations.
Hong Kong Facts
|Bond Yield||1.65||2.17 %||Sep 21|
|Exchange Rate||7.80||0.05 %||Sep 21|
|Stock Market||28,110||-0.06 %||Sep 21|
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September 5, 2017
The Nikkei Hong Kong Purchasing Managers’ Index (PMI) released by IHS Markit fell back into contractionary territory in August following four months of expansion.
August 29, 2017
July retail sales volume expanded a robust 4.6% in annual terms, which followed June’s revised 0.5% growth (previously reported: +0.4% year-on-year) and was the highest reading since February 2015.
August 22, 2017
Inflation inched up to 2.0% in July from 1.9% in June.
August 11, 2017
The economy posted a strong performance in Q2, with GDP expanding 3.8% over the same quarter of last year.
August 3, 2017
The Nikkei Hong Kong Purchasing Managers’ Index (PMI) released by IHS Markit came in above the 50-point threshold for a fourth consecutive month—a multi-year first—in July, edging up to 51.3 from 51.1 in June.