“Hong Kong’s economy expanded less than estimated in the third quarter as export gains stalled and retail sales rose at a slower pace. The government also cut its forecast for full year growth.
Gross domestic product rose 1.3 percent from a year earlier in the third quarter, the government said today. That compared with the 1.7 percent median forecast in a Bloomberg News survey of 16 analysts and 1.2 percent in the three months through June. The economy grew 0.6 percent from the previous quarter on a seasonally adjusted basis.
Hong Kong’s economy is set for its weakest annual expansion since the global financial crisis, adding to challenges for Hong Kong’s new Chief Executive Leung Chun-ying as he grapples with capital inflows that are stoking property prices and testing the local currency’s peg to the U.S. dollar. Financial SecretaryJohn Tsang said on Nov. 11 that the trade-reliant economy may enter recession if its major partners show a loss of growth momentum or signs of contraction.
“The biggest drag on Hong Kong’s economy is external trade,” said Lily Lo, a Hong Kong-based economist at DBS Group Holdings Ltd. “There is as yet no clear data or evidence pointing to a sharp rebound in key western export markets.” ”
If you enjoy the content at iBankCoin, please follow us on Twitter
