Hong Kong Q4 GDP Growth Weakest in A Year

The Hong Kong economy advanced 3.4 percent year-on-year in the December quarter of 2017, following an upwardly revised 3.7 percent expansion in the previous period. It was the weakest pace of expansion since the fourth quarter 2016, as a marked slowdown in government spending and exports of goods offset a rebound in investment while private consumption was stable.

Positive contribution to GDP came from private consumption (4.1 percentage points); fixed investment (1.1 percentage points) and government spending (0.3 percentage points). Also, changes in inventories added 0.4 percentage points to growth. 

In the fourth quarter, private consumption increased by 6.3 percent, the same as in the September quarter. Government spending expanded by 3.1 percent, following a 4.5 percent rise in Q3. Gross fixed capital formation grew by 4.7 percent, reversing from a 1.3 percent decline in the previous period. Within fixed investment, expenditure on machinery, equipment and intellectual property products increased by 10.1 percent, as against the fall of 4.3 percent in Q3. Exports of goods went up by 3.4 percent, after a 5.7 percent increase in the third quarter. Imports rose by 5.4 percent (from 6.3 percent). Exports of services advanced 4.0 percent (from 3.9 percent) and imports of services increased at a slower 0.6 percent (from 1.6 percent).

Considering full 2017, the economy grew by 3.8 percent, much stronger than a 2.1 percent expansion in 2016. 

On a quarterly basis, the GDP advanced 0.8 percent, the same as an upwardly revised figure in the prior quarter. Private consumption rose by 1.4 percent (from 2 percent in the September quarter). Meantime, government spending contracted 0.3 percent (from 1.8 percent). Exports of goods rose 1.1 percent (from 0.7-percent) and imports increased by 2.4 percent (from 1.5 percent). Exports of services went up 0.5 percent (from -1.2 percent in Q3) while imports grew by 0.3 percent, the same as in the prior period.

Hong Kong Q4 GDP Growth Weakest in A Year

Rida Husna | rida@tradingeconomics.com
2/28/2018 5:49:41 AM