Hong Kong Economy Slows in Q1

Hong Kong GDP advanced 2.1 percent year-on-year in the first quarter of 2015, compared to a revised 2.4 percent expansion in the previous quarter. Although external demand remains subdued, domestic demand continues to be the main driver of growth.
Censtatd l Joana Ferreira l joana.ferreira@tradingeconomics.com 5/15/2015 10:31:09 AM
Year-on-year, total exports of goods grew marginally by 0.4 percent, down from a 0.6 percent increase in the previous quarter. At the same time, imports of goods increased modestly by 0.1 percent, compared with the 1.1 percent growth in the fourth quarter of 2014. Exports of services fell 0.6 percent, down from a 0.3 percent decrease in the previous quarter, while imports of services increased by 4.3 percent, compared with the 1.1 percent increase in the fourth quarter of 2014.

Private consumption expenditure grew 3.5 percent, from 4.1 percent in the precedent quarter, supported by stable labour market conditions as the unemployment rate remained low while wages and earnings kept growing. Meanwhile, government consumption expenditure increased by 3.5 percent, compared with the growth of 3.3 percent in the fourth quarter of 2014.

Gross domestic fixed capital formation surged by 7.3 percent after a 3.4 percent growth in the previous quarter. Expenditure on machinery, equipment and intellectual property products increased by 14.2 percent, while expenditure on building and construction decreased by 3.3 percent, against the increase of 7.6 percent in the precedent quarter.

On a seasonally adjusted quarter-to-quarter basis, the GDP increased by 0.4 percent.

For 2015, the Hong Kong GDP is expected to grow between 1.0 to 3.0 percent. For reference, the latest forecasts by private sector analysts mostly range from 1.6 to 3 percent.

Hong Kong Economy Slows in Q1