Hong Kong economy expanded briskly in the second quarter of
2007, with GDP speeding up to a 6.9 percent growth over a year
earlier, up from a revised 5.7 percent in the first quarter, the
government said Friday.
The overall GDP growth in the first half turned out to be 6.3
percent, also better than previously expected, and the growth
forecast for the whole year was revised from 4.5 - 5.5 percent to 5
- 6 percent, said government economist Kwok Kwok-chuen.
Kwok acknowledged the existence of external uncertainties but
said the economy was set for further solid growth in the second
half barring abrupt changes for the worse.
The growth was attributed to robust export of goods, which went
up by 11.3 percent in the second quarter in real terms over a year
earlier. The mainland market continued to be the key driver and a
weak US dollar contributed to the growth, too.
Exports of services also grew distinctly by 10.9 percent.
In the domestic sector, private consumption expenditure
increased by 6.6 percent and overall investment spending picked up
to a strong increase of 11.1 percent.
The government also warned of uncertainties ahead, including the
impact of prolonged correction in the US housing market, the recent
turmoil arising from the sub-prime mortgages and the consequent
tightening in credit conditions in many financial markets.
The forecast rate of increase in the composite consumer price
index for the year as a whole was maintained at 1.5 percent, Kwok
said.
Higher food prices, RMB appreciation and weakness of the US
dollar are likely to continue to exert pressure in terms of
inflation outlook. Nevertheless, sustained rapid increase in
productivity on the supply side would provide an offset.
(Xinhua News Agency August 18, 2007)