HK economy grows 1.9% as exports uptick continues

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hong_kong_view_from_the_peakHong Kong’s economy continued to pick up in the third quarter of this year, largely due to improvements in exports and in domestic demand.

The territory’s economy grew by 1.9% year-on-year in real terms, slightly higher than the 1.7% growth seen in the preceding quarter, according to a report by Hong Kong’s Information Services Department.

 Total goods exports grew by 1.9% in the third quarter. Private consumption expenditure grew by 1.2% over a year earlier.

Delivering the third quarter report recently, Government Economist Helen Chan said that as Asia’s exports stabilized, Hong Kong’s total goods exports continued to grow in the third quarter.

There was also improvement in services exports, with the year-on-year decline narrowing to 1.8% in the third quarter, thanks to the stable regional trade and cargo flows and a revival in initial public offering activities.

The report said the global economy will likely continue to expand at a modest pace in the near term, even as it noted the uncertainties emanating from possible US policy changes after the election and the UK’s vote to leave the European Union.

The economic growth forecast for 2016 has been adjusted to 1.5%.

HK Sep export volume rises 5.4%

Meanwhile, the Census & Statistics Department said the volume of total exports of goods increased by 5.4% in September year-on-year as re-exports increased by 5.4% and domestic exports increased by 4.8%.

The volume of imports also increased, up by 6% in September year-on-year.

Comparing the first nine months of 2016 with the same period in 2015, the volume of re-exports of goods decreased by 0.1%, while that of domestic exports decreased by 9%.

Taken together, the volume of total exports of goods decreased by 0.2%, while that of imports decreased by 0.9%.

Comparing the third quarter of this year with the preceding quarter on a seasonally adjusted basis, the volume of total exports of goods increased by 1.5%.

Prices of re-exports of goods decreased by 1.3% year-on-year, while those of domestic exports decreased by 1.5%. Taken together, the prices of total exports decreased by 1.3%, and the prices of imports fell by 1.2%.

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