The Government says it is confident of meeting its annual 5 per cent growth target despite a disappointing 3 per cent during the first quarter.
A surge in building and construction coupled with a pick-up in retail sales and increased demand for exports are expected to provide a turnaround in growth.
Many economists were, however, sceptical whether economic growth during the remaining nine months would be strong enough to meet the forecast and expected a downward revision in the half-year estimates.
Government economist K.Y. Tang yesterday provided an upbeat assessment of growth prospects and dismissed concerns about the territory being caught up in a trade war between China and the United States, or rising interest rates.
'Gradual recovery in consumer demand, revival in private sector building activity, and continued heavy investment in infrastructural projects are expected to render a stronger growth momentum in the domestic sector,' he said.
'In addition, sustained robust growth is envisaged for exports of services. These should offset the more moderate growth forecast for exports of goods.' In the first quarter, seasonally adjusted unemployment fell from 3.5 per cent to about 3.2 per cent, while underemployment - involuntary work of less than 35 hours a week - dropped from 2.3 per cent to 2 per cent.