Press Release (ePRNews.com) - SINGAPORE - Aug 19, 2016 - Hong Kong’s economy grew slightly, but better than expected, in the second quarter of 2016 registering a 1.7% growth from the previous year amid slowdowns in the major sectors of the economy including tourism and exports. The growth has bet analysts’ projections of 0.9%.
According to a statement by the government issued last Friday, the gross domestic product (DGP) expanded by 1.6% in the three months through June from this year’s first quarter.
With this growth and the stabilization of the global trading environment and a recovery in the tourism numbers and exports underway, economists say the worst stretch may have passed for the local economy. That said, economists still expect the economy to experience a record low not experienced in a long time.
“Hong Kong’s economy regained some momentum in the second quarter, that’s in line with what we expected,” said acting Hong Kong government economist Andrew Au Sik-hung.
The Hong Kong government said in a recent statement that the United Kingdom’s decision to exit the European Union still poses global financial and economic risks even though the United States improving economy could grant considerable support to Hong Kong’s goods exports.
“Various external downside risks still persist and warrant close monitoring. These include the uncertainty about US interest rate normalization, monetary policy divergence among major central banks, fragile recoveries of the euro area and Japan,” said the government.
Local economists are confident that Hong Kong will realize its full year growth target of 1 to 2% but warn on the persistence of sluggish global economic environment headwinds, that might dent the country’s economy.
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