Hong Kong GDP Annual Growth Lowest in Over 3 Years

The Hong Kong GDP advanced 1.9 percent year-on-year in the December quarter of 2015, slowing from a downwardly revised 2.2 percent expansion in the previous quarter and slightly below market consensus. It is the lowest growth since the third quarter of 2012, as an increase in household and government spending were unable to offset a decline in investment and exports.

In the fourth quarter, private expenditure grew by 3.2 percent, as compared to a 4.3 percent rise in the previous quarter. Government spending rose by 3.5 percent, up from a 2.8 percent growth in the September quarter. In contrast, gross fixed capital formation contracted 9.7 percent, after rising 6.4 percent in the previous period. Exports of goods were down by 0.3 percent, following a 3.2 percent contrastion in the previous period. Imports of goods also fell by 2.6 percent, as compared to a 4.1 percent decline in the previous three months.
On a quarterly basis, the economy expanded 0.2 percent, slowing from a downwardly revised 0.6 percent expansion in the September quarter.

For full year of 2015, the economy expanded by 2.4 percent.

For 2016, the economy is expected to grow between 1.0 percent to 2.1 percent. Meanwhile, headline inflation for the year is set to rise by 2.3 percent, lower than 3.0 percent in the preceding year, and underlying inflation is projected to be at 2.0 percent (from 3.0 percent in 2015).

Hong Kong GDP Annual Growth Lowest in Over 3 Years

Census and Statistics Department l Rida Husna | rida@tradingeconomics.com
2/24/2016 8:18:07 AM