Hong Kong GDP Annual Growth Slows to 2-Year Low


Hong Kong's economy grew 2.9 percent year-on-year in the third quarter of 2018, easing from a 3.5 percent expansion in the previous three-month period and matching market expectations. It was the weakest growth rate since the third quarter of 2016. The government has revised its forecast for full-year 2018 growth to 3.2 percent from 3-4 percent amid concerns over the impact of a trade war between China and the US.

Private consumption growth eased to 5.2 percent in the third quarter from 6 percent in the previous period and government spending expansion slowed to 3.3 percent from 4.3 percent. In addition, net external demand contributed negatively to the GDP growth as imports rose faster than exports. Imports of goods climbed 7.6 percent (vs 6.3 percent in Q2) and those of services jumped 3.4 percent (vs -0.1 percent in Q2), while exports of goods increased at a softer 5 percent (vs 4.6 percent in Q2) and those of services advanced 3.1 percent (vs 5.9 percent in Q2).

On the other hand, fixed investment surged 8.2 percent in the third quarter, much faster than 1.1 percent gain in the previous three-month period and boosted by investment in machinery, equipment and intellectual property products (21.2 percent vs 4.9 percent). Costs of ownership transfer, however, fell 1 percent (vs 0.7 percent in Q2) and spending on building and construction shrank 0.3 percent (vs -1.6 percent in Q2).

On a seasonally adjusted basis, Hong Kong's economy grew 0.1 percent in the three months to September, reversing a 0.2 percent contraction in the previous period. There was rebound in private consumption, while government spending increased at a slower rate and net external demand contributed negatively to the GDP growth.

Hong Kong GDP Annual Growth Slows to 2-Year Low


Census and Statistics Department | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/16/2018 9:15:34 AM