HK economy decelerates to 2.3% as exports decline

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Tsim_Sha_Tsui_Ferry_PierHong Kong’s economy slowed to 2.3% year-on-year in the third quarter from 2.8% in the previous quarter, as goods exports fell 3.2% on weaker global demand.

Government Economist Helen Chan said that on a seasonally adjusted quarter-on-quarter comparison, real gross domestic product (GDP) rose by 0.9% in the third quarter, compared to 0.4% growth in the preceding quarter.

Delivering the half-yearly economic report, Chan said the growth slowdown was part of a region-wide phenomenon amid a lackluster global economy, and reflected the intensified drag on the economy from weaker external demand, while the domestic segment also expanded at a slower pace.

Taking into account the actual growth outturn of 2.5% in the first three quarters, and even with an expected lackluster external demand in the fourth quarter, real GDP for 2015 as a whole is still expected to attain moderate growth of 2.4%, she said.

Total goods exports declined 3.2% year-on-year in real terms, while services exports also declined 1.3% year-on-year, dragged down by continued contraction in inbound tourism and subdued regional trade and cargo flows.

Chan said global economic growth is expected to remain modest and uneven in the near term, marked by increasing downside risks.

Meanwhile, Financial Secretary John Tsang said the slower economic growth seen in the third quarter was within his expectations and consistent with the forecast of 2% to 3% growth for the year he made in February.

Tsang said the economy is facing some difficulties this year including the downward trend in tourism and retail, and is also affected by unfavorable external factors.