Hong Kong's economy expanded slightly in the second quarter, with real GDP rising by 2.8% year-on-year, Government Economist Helen Chan announced today.
On a seasonally adjusted quarter-on-quarter comparison, real GDP rose by 0.4% in the second quarter, compared to 0.7% growth in the preceding quarter.
Underlying consumer price inflation eased further to 2.5% from 2.7% in the previous quarter.
Delivering the Half-yearly Economic Report, Mrs Chan said taking into account the actual growth outturn of 2.6% in the first half, and with the local economy poised for further moderate growth in the second half, the GDP growth forecast for this year has been revised upward to 2-3% from 1-3% in the May review.
The headline and underlying consumer price inflation forecasts for this year are revised downward to 3.1% and 2.6% from 3.2% and 2.7%.
Total goods exports declined 3.6% year-on-year in real terms, while services exports posted a year-on-year growth of 1% with the surge in financial services exports compensating for the negative impact from sluggish trade flows and continued weakness in inbound tourism.
Mrs Chan said the labour market remained in a state of full employment, with total employment staying near its record high.
As the global economic outlook in the near term remains mediocre, Hong Kong's exports of goods are expected to remain weak.
Hong Kong's economic growth in the second half would have to rely on the domestic sector as the key propeller, she added.
