Hong Kong second quarter GDP up 3.3pc, reversing year of decline

HONG KONG Government figures show the territory's gross domestic product grew 3.3 per cent in the second quarter after four quarterly contractions as the year-on-year decline narrowed from 7.8 per cent in the first quarter to 3.8 per cent in the second.

Exports fell 12.4 per cent year on year in the second quarter, but that was a much smaller drop than the 22.7 per cent decline in the first quarter, meaning exports rebounded 11.6 per cent on a seasonally adjusted basis.

The improvement was most evident in exports to the mainland, and to a lesser extent to other Asian markets. Performance of the US and EU markets still lagged. Hong Kong's second quarter export performance did better than other Asian economies, said the government.

"While Hong Kong is seeing light at the end of the tunnel, the economic outlook remains highly uncertain," said the government press release.

"For a small open economy like Hong Kong, a sustained and solid recovery still hinges on a visible improvement in the external environment. The impact of human swine influenza is another risk. Locally, asset market gyrations could occur if the global recovery process turned out to be unsteady and weaker than-expected. In short, the recovery path ahead can be bumpy," said the statement.

Said Financial Secretary John Tsang: "The mainland economy has gained faster momentum, thereby benefiting the Hong Kong economy. Equally important has been the confidence exhibited by the Hong Kong people despite the tremendous shocks of the global financial tsunami."
 
(Source: www.schednet.com)