Hong Kong 1Q13 GDP jumped by 2.8%

But it was still below expectations.

According to BBVA, first quarter GDP grew by 2.8% y/y (BBVA: 2.5% y/y; consensus: 2.7% y/y), but was below expectations on a sequential basis, at 0.2% q/q, s.a., non-seasonalized (BBVA: 0.1% q/q; consensus: 0.5% q/q), compared to 1.4% q/q in Q4. 

By expenditure, the external sector rebounded from Q4 while investment declined. IGDP growth was supported by strong private consumption (7.0% y/y vs 2.8% y/y in Q4), boosted by the continued strong labor market and the wealth effects from high housing prices.

Here's more from BBVA:

However, the pickup in private consumption has recently caused the Hong Kong Monetary Authority (HKMA) to warn of overheating risks from the inflated property market.

Looking ahead, the authorities expect external headwinds to keep growth to within a 1.5-3.5% rage for the full-year 2013 (BBVA: 3.5%).