Hong Kong’s Q3 economic momentum cools on China slowdown
November 11, 2016
HONG KONG (Reuters) – Hong Kong’s economic development decelerated in the third quarter from second as feeble exports, slow retail deals and dropping tourist arrivals inflicted significant damage on the previous British colony.
In spite of the fact that the administration kept its entire year estimate for 2016 amidst its past forecast range of somewhere around 1 and 2 percent, underlying strength slowed from the June quarter.
Looking ahead, the administration anticipates that development will stay on a modest track in the close term because of various concerns, including the likely trend of rising interest rates in the United States and raised geopolitical dangers somewhere else.
“There is a need to remain aware to these dangers for their possible consequences on the global financial and economic condition,” it said in an announcement.
The economy grew a regularly balanced 0.6 percent in the third quarter, compared with a downwardly revised 1.5 percent in the June quarter. Economists surveyed by Reuters had forecasted development of 0.3 percent.
From prior year, the economy expanded 1.9 percent in third quarter compared with 1.7 percent in the past quarter and economists’ expectations of 1.6 percent.
A marked slowdown in exports and weaker development in private consumption, and government spending consolidated to push down GDP in the third quarter.
Hong Kong’s services sector has also been in a continued slump with retail deals falling for the nineteenth straight month in September as a solid local currency pleated business action and tourism.
Slower financial development could leap further on Hong Kong leader Leung Chun-ying ahead of an election next year and in the midst of rising pressures with the central government in China over worries of increased meddling by Beijing in the city’s issues.
Hong Kong’s benchmark index shut down 1.4 percent before the information on Friday, capping a turbulent week in financial markets in the wake of Donald Trump’s astound presidential win at the U.S. decisions.
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