Hong Kong's economy in the second quarter expanded by a faster-than-expected 3.8% from a year ago on strong private consumption and solid exports, prompting the government to raise its full-year growth forecast.
The growth rate was slower than the 4.3% expansion in the first quarter, but was faster than the median 3.2% growth rate forecast by five economists polled by The Wall Street Journal.
Continue Reading Below
On a seasonally adjusted basis, gross domestic product expanded 1.0% in the second quarter from the previous quarter, accelerating from the first quarter's 0.7% growth, the government said Friday.
Private consumption, which makes up about two-thirds of Hong Kong's GDP, rose 5.3% year-over-year in the second quarter, up from a 3.9% expansion in the first quarter. Total exports of goods rose 5.6% in the second quarter from a year ago, compared with a 9.3% expansion in the previous quarter.
"Domestic demand should remain firm. Favorable employment and income conditions will continue to bode well for private consumption, while the improved economic outlook should lend support to business investment," said Andrew Au, the deputy government economist.
Amid the solid growth in the first-half, the government raised its full-year growth forecast to 3%-4% from 2%-3% previously.
Write to Chester Yung at email@example.com
(END) Dow Jones Newswires
August 11, 2017 05:07 ET (09:07 GMT)