This is due to weak performance of investments and low external demand.
Hong Kong’s GDP grew by 0.6% YoY in the second quarter, a rate similar to the first quarter, according to advanced estimates from the Census and Statistics Department.
This was attributed to the weak performances in investment expenditure and external demand.
On a seasonally adjusted QoQ basis, GDP fell by 0.3% in the second quarter in contrast with the first quarter.
Private consumption expenditure climbed by 1.2% YoY in Q2, faster than the first quarter’s 0.4% growth. Likewise, government consumption expenditure measured in national accounts terms rose by 4.0% YoY in the second quarter, slightly lower than the 4.5% YoY recorded in Q1.
On the other hand, gross domestic fixed capital formation slipped by 12.1% YoY in Q2 to add to the 7% YoY decrease in the first quarter.
Over the same period, C&SD noted that total exports of goods measured in national accounts terms fell by 5.4% YoY, bigger than the 3.7% decrease in the previous quarter; whilst imports of goods measured in national accounts terms declined by 7% YoY in Q2 against a 4.2% YoY decline in Q1.
Meanwhile, exports and imports of services rose by 0.2% YoY, slower than the 0.8% YoY growth in Q1; and imports of services increased by 1.7% YoY from 1.5% YoY decrease in the previous quarter.
According to the C&SD, a government spokesman said that based on the advance estimates, overall economic performance was subdued in the second quarter, with external demand weakened further whilst domestic demand stayed sluggish.
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