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Hong Kong's economy recovered in second quarter

16 August, 2016

Hong Kong's economy grew at the fastest pace since March 2011.

It has increased by 1.7 per cent in the second quarter of the year. Accordingly, to the acting government economist Andrew Au Sik-hung, the growth was largely supported by an uptick in goods export, as regional trade flows began to stabilize. China's economy showed signs of stabilization after authorities stepped up policy support.

Furthermore, the number of tourists travelling to Hong Kong rose 2.6 per cent comparing to the figure from July 2015.

Private consumption expenditure grew by 0.6% over a year earlier.

Brexit caused a temporary, large sell-off on financial markets all around the world and exacerbated an already subdued global economic outlook, but Au said the country's momentous vote has made little impact on the wider European and global economies.

However, the negative impact of Brexit should fade away and will not affect Hong Kong's economic growth. Hong Kong as an export-oriented economy will most likely meet its full-year growth target.

The implicit price deflator of GDP – as a broad measure of overall inflation in the economy - increased by 2 percent in the second quarter of 2016 over a year earlier, compared with the 2.3 percent increase in the first quarter.

Other economies in the region are suffering. Singapore on Thursday cut the top end of its 2016 growth forecast after the economy expanded less than previously estimated in the second quarter.

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