GDP slows to 2.3% as exports dropped in 3Q15

Weaker external demand is blamed.

The government stated that Hong Kong’s economic growth slowed to 2.3% y/y in real term in 3Q15 from 2.8% in 2Q15. According to a research note from Barclays, in terms of q/q change, the GDP grew slightly by 0.9% from 2Q15 to 3Q15.

The government attributed the slowdown in y/y growth rate to an intensified drag from weaker external demand, as exports of goods dropped 3.2% y/y and exports of services also relapsed with a 1.3% y/y decline.

Here's more from Barclays:

However, domestic demand still expanded, though at a slower pace. Private consumption expenditure still increased solidly by 4.3% y/y, thanks to broadly favourable job and income conditions in recent quarters.

Government consumption expenditure also contributed to the positive GDP with a steady 2.6% y/y growth in 3Q15.

Taking into account of an actual 2.5% y/y GDP growth in 9M15 and a lacklustre outlook for 4Q15, the government revised its GDP forecast for full-year 2015 from “2-3%” in the August round to “2.4%” now. The government also revised down underlying inflation slightly from 2.6% in the August round to 2.5% now.