In Focus
ECONOMY | Staff Reporter, Hong Kong

GDP dips 3.4% in Q3

Private consumption expenditure improved to 7.7% from Q2.

Hong Kong’s gross domestic product (GDP) sunk 3.4% in real terms in Q3 amidst the reported 9% decrease in Q2, according to advanced estimates from the Census and Statistics Department.

The dip was due to the low base of comparison and the gradual improvement in both domestic and external demands.

“An improved external environment led by the solid expansion of the Mainland economy, some revival in sentiment in the latter part of the quarter amidst the stabilisation of the local epidemic situation, and stronger financial market activity all contributed,” a government spokesperson said.

Whilst improvement on overall economic performance was seen, the level of economic activity in Q3 was still notably below the level before recession.

Private consumption expenditure fell 7.7% in real terms, improving from the 14.2% decline in Q2. Government consumption expenditure measured in national accounts terms grew 6.4% after the 9.7% increase in Q2.

Gross domestic fixed capital formation slipped 11.2% in real terms.

Total exports of goods measured in national accounts terms increased 3.8% in real terms against the 2.2% decrease in Q2. Imports of goods grew 1.9% from the 6.7% decline in Q2.

Furthermore, exports of services crashed 34.8% in Q3, whilst imports of services plunged 37.8% in the same period.

Overall investment expenditure displayed relative improvements from Q2 amidst continued fall.

“The continued solid recovery of the Mainland economy should render support to Hong Kong's exports in the coming few months,” the spokesperson added.

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