Hong Kong grows 2.8% in Q1

HONG KONG, China – Hong Kong’s economy saw modest year-on-year growth in the first quarter, with strong demand from mainland China offsetting a weak environment in the West, officials said Friday, May 10

Gross domestic product grew by 2.8% in the first three months of 2013, compared to the same period last year, a government statement said.

Hong Kong registered the same growth rate in the previous quarter.

Exports grew by 1.8% over the preceding quarter on a seasonally adjusted basis, due to strong growth from mainland Chinese and other Asian markets. But exports to the United States, European Union and Japan fell.

Government economist Helen Chan told reporters that China and Asia “provided a cushion” that helped Hong Kong’s economy — which is driven by trade and financial services — overcome weaker demand in the West.

“In view of the continued sluggishness in demand in the advanced economies, which would continue to put a drag on economic activity in Asia, Hong Kong’s trade performance is likely to see some fluctuations,” the statement said.

“Nonetheless, the sustained solid growth of the mainland economy should continue to lend some support to intra-regional trade going forward, to the benefit of Hong Kong,” it said.

Domestic spending grew by 7% year-on-year in the first quarter, and the unemployment rate was steady at 3.5% for the 3 months.

Underlying consumer price inflation was stable at 3.8%. – Rappler.com