Better than expected but still not great: Hong Kong economy grows 1.7 per cent in second quarter
Uptick in goods exports cited for modest rise but Brexit and uncertain global outlook could hinder recovery, top government economist warns
Hong Kong’s economy grew at a modest but better-than-expected pace of 1.7 per cent in the second quarter of the year, with economists predicting the worst of the recent downturn is over.
The figure beat analysts’ projections of 0.9 per cent, and the government made no change to its full-year growth target of 1 to 2 per cent after the release of the result.
Economists said the roughest patch should have passed for the local economy, with a recovery in tourist numbers under way and stabilisation of the global trading environment on the horizon. However, growth for the year as a whole is still expected to hit a low not seen in years.
“Hong Kong’s economy regained some momentum in the second quarter,” acting government economist Andrew Au Sik-hung said. “That’s in line with what we expected.”
He said second-quarter growth was largely supported by an uptick in goods exports, as regional trade flows began to stabilise after a disappointing start to the year.
Goods exports recorded year-on-year growth of 2 per cent in real terms following four consecutive quarters of decline.