Hong Kong's third quarter GDP beats expectations; full-year target adjusted
While third-quarter growth was a surprisingly strong 2.7pc, maximum target for full-year expansion lowered on likely impact of sit-ins
Hong Kong's economy grew at a faster-than-expected 2.7 per cent pace in the third quarter, but uncertainty surrounding the Occupy protests prompted the government to revise its full-year forecast to the lower end of its earlier estimate.
The 2.7 per cent year-on-year expansion between July and September beat the consensus market forecast of 1.8 per cent thanks to a revival in domestic consumption and a much smaller drop in tourist spending compared with the previous quarter.
Still, the government warned: "Looking ahead, the rather encouraging developments in the third quarter may not be able to extend in the fourth quarter, in light of disruptions to economic activities due to the Occupy Movement since late September."
The actual impact of the protests could only be assessed more comprehensively after the release of October retail sales figures, said government economist Helen Chan.
Blocked roads in Mong Kok, Causeway Bay and Admiralty have dampened sentiment among small and medium-sized enterprises.
An index compiled by the Census and Statistics Department based on a survey of 400 SMEs dropped to its lowest reading in October since its launch in November 2008. The latest reading is 41, indicating grim business conditions. A reading above 50 means business conditions are favourable.