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Economy grows 3.8%

August 11, 2017

Hong Kong's economy grew 3.8% in the second quarter of 2017, compared to the same period last year.


The sustained economic growth followed the 4.3% rise in the previous quarter.


The growth for the first half of the year was also better than expected, prompting the Government to revise upwards its whole-year GDP forecast for 2017.


Delivering the latest Economic Report today, Deputy Government Economist Andrew Au said provided there is no severe external shock, the local economy will grow further for the rest of the year.


“Taking into account the better-than-expected growth of 4% in the first half of this year, in the current round of review the Government revises upwards the real GDP growth forecast for 2017 as a whole by one percentage point, to a range of 3% to 4%."


Hong Kong's total goods exports grew 5.6% year-on-year in the second quarter, with exports to Asian markets contributing to the growth.


The property market also stayed active, with residential property prices rising by 5% from March to June.


Overall flat prices in June exceeded the 1997 market peak by 94%.


Inflation remained moderate in the second quarter, with underlying and headline consumer price inflation both rising to 2%.


Looking ahead, Mr Au said there is still a need to stay alert to the uncertainties in the external environment, including the pace of US monetary policy normalisation, policy differences among major central banks and UK's intended withdrawal from the European Union.


A possible rise in protectionist sentiment and heightened geopolitical tensions in various regions also warrant attention, he added.