Hong Kong GDP Growth Beats Expectations in Q3

The Hong Kong economy advanced 1.9 percent year-on-year in the third quarter of 2016, higher than a 1.7 percent expansion in the previous period and above market expectations of 1.6 percent, boosted by private spending and investment.

Private consumption increased 1.2 percent (0.5 percent in Q2) while government spending grew at a slightly slower 3.3 percent (3.5 percent in Q2). Gross fixed capital formation also expanded at a faster 6 percent (5 percent in Q2) as expenditure on machinery, equipment and intellectual property products rebounded and increased 6.1 percent (-11.2 percent in Q2) and expenditure on building and construction rose 3.4 percent (3.54 percent in Q2), boosted by private investment (+5.2 percent) while public one edged down 0.2 percent. 

Exports growth slowed (1.8 percent compared to 4.6 percent in Q2) and imports expanded at a slightly faster pace (1.7 percent compared to 1.6 percent in Q2). 

On a quarterly basis, the economy advanced 0.6 percent, slowing from a downwardly revised 1.5 percent expansion in the previous period but better than market expectations of 0.3 percent. 

The government revised its 2016 growth forecasts to 1.5 percent from 1-2 percent.

Hong Kong GDP Growth Beats Expectations in Q3

Census and Statistics Department l Joana Taborda | joana.taborda@tradingeconomics.com
11/11/2016 9:37:23 AM