Hong Kong GDP Growth Accelerates to 3.3% YoY in Q2

In the second quarter of 2013, Hong Kong GDP expanded 3.3 percent over a year earlier, the fastest pace in seven quarters. Improvements in public investment and consumption were enough to offset a slowdown on exports and private consumption.
Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com 8/16/2013 10:29:03 AM
Government consumption increased by 3.1 percent yoy, compared with the growth of 2.1 percent in the first quarter.

Gross domestic fixed capital formation expanded by 6.9 percent in the second quarter of 2013 over a year earlier, as against the 3.3 percent decrease in the first quarter. Expenditure on machinery, equipment and intellectual property products increased by 19.4 percent, as against the 4.0 percent decrease in the first quarter. Expenditure on building and construction decreased by 2.1 percent, compared with the decrease of 2.6 percent in the previous quarter. Within this category, expenditure on building and construction in respect of the private sector shrank by 6.7 percent, while that of the public sector registered a growth of 9.8 percent.

Private consumption expenditure increased by 4.2 percent yoy, moderating from the 6.3 percent growth in the first quarter.

Both exports and imports decelerated in the second quarter. Exports of goods expanded 6.2 percent yoy, from 8.8 percent in the first quarter of 2013, while imports of goods increased by 7.6 percent, from 9.6 percent. The advanced markets were still the weak spots, as exports to the US, EU and Japan continued to post moderate year-on-year declines.  Moreover, exports to the major Asian markets including the Mainland, Taiwan and Singapore also showed some slowdown.

In contrast, exports of services increased by 8.1 percent yoy, compared with the 5.3 percent increase in the first quarter. Exports of travel services remained the key growth driver, with visitor spending accelerating markedly in the second quarter.  Exports of financial and other business services also saw some improvement.

On a seasonally adjusted quarter-to-quarter comparison basis, the GDP also accelerated to 0.8 percent, from 0.2 percent in the first quarter of 2013.

Hong Kong GDP Growth Accelerates to 3.3% YoY in Q2