GDP growth holds firm at 0.6% in Q2

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.

Also read: Hong Kong trade deficit narrows to $244.2b for H1

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.