Hong Kong economy grows by 3.3% in second quarter, but analysts caution against optimism

But analysts cautioned that falling domestic demand remained a concern and the pressure on the economy was more significant than the headline figures suggested.

Advance estimates released by the Census and Statistics Department on Wednesday showed gross domestic product (GDP) growth was at the higher end of the official full-year forecast.

A government spokesman said total exports continued to exhibit strong growth supported by external demand for goods, but that the performance of different sectors would vary moving forward.

“Overall investment expenditure rose further alongside the overall economic growth,” the spokesman said. “However, exports of services saw moderated growth, while private consumption expenditure turned to a slight decline, affected by the changes in consumption patterns of visitors and residents, as well as the strength of the Hong Kong dollar.

“Looking ahead, the economy should continue to grow in the remainder of the year, but performance of the different economic segments may vary amid uncertainties on various fronts.”