Hong Kong Economy Expands 2.8% in Q2

Hong Kong GDP advanced 2.8 percent year-on-year in the second quarter of 2015, compared to a revised 2.4 percent expansion in the previous period. The growth was boosted by domestic demand and investment while external sector remained weak.
Censtatd l Yekaterina Guchshina l yekaterina@tradingeconomics.com 8/14/2015 10:47:12 AM
Year-on-year, total exports of goods decreased by 3.6 percent, down from a 0.4 percent increase in the previous quarter. The fall in exports of raw materials and semi-manufactures as well as capital goods to many Asian economies was the key drag of it. At the same time, imports of goods decreased by 3.2 percent, compared with the 0.1 percent growth in the first quarter of 2015. Exports of services grew 1.0 percent, compared with the virtually no change in the first quarter. While imports of services increased by 4.3 percent, compared with the 6.1 percent increase in the first quart.

Private consumption expenditure grew 6.0 percent, from 5.3 percent in the precedent quarter, on the back of full employment and rising income. Meanwhile, government consumption expenditure increased by 3.3 percent, compared with the growth of 3.4 percent in the first quarter of 2015.

Gross domestic fixed capital formation surged by 6.5 percent after a 7.5 percent growth in the previous quarter. Expenditure on building and construction increased by 12.3 percent, as large-scale infrastructure works rebounded strongly. At the same time, private sector machinery and equipment acquisition had further year-on-year growth of 1.1 percent.

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 2.0 to 3.0 percent. For reference, the latest forecasts by private sector analysts mostly range from 1.6 to 2.9 percent.

Hong Kong Economy Expands 2.8% in Q2