Economy slows to 2.3% (13.11.2015)

Hong Kong's economy slowed to 2.3% year-on-year in the third quarter from 2.8% in the previous quarter, Government Economist Helen Chan announced today. On a seasonally adjusted quarter-on-quarter comparison, real GDP rose by 0.9% in the third quarter, compared to 0.4% growth in the preceding quarter. Underlying consumer price inflation eased slightly further to 2.4% from 2.5% in the previous quarter. Delivering the Half-yearly Economic Report, Mrs Chan said the growth slowdown was part of a region-wide phenomenon amid a lacklustre global economy, and reflected the intensified drag on the economy from weaker external demand, while the domestic segment also expanded at a slower pace. Taking into account the actual growth outturn of 2.5% in the first three quarters, and even with due cognisance of a still lacklustre external segment in the fourth quarter, real GDP for 2015 as a whole is still expected to attain moderate growth of 2.4%, she said. The headline and underlying consumer price inflation forecasts for this year have been revised downward to 3.1% and 2.6% from 3% and 2.5%. Total goods exports declined 3.2% year-on-year in real terms, while services exports also declined 1.3% year-on-year, dragged down by continued contraction in inbound tourism and subdued regional trade and cargo flows. Mrs Chan said global economic growth is expected to remain modest and uneven in the near term, marked by increasing downside risks. Hong Kong's economic growth for the rest of the year will depend on domestic demand. She reminded prospective flat-buyers to be vigilant as the risk of a housing market bubble remains prominent. Trading volume plunged by 13% over the previous quarter, while prices rose at a decelerated pace of 1.5% during the same period. (http://j.mp/1MNsguK)