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HK economy rebounds in second quarter

After four consecutive quarters of contraction, real gross domestic product of Hong Kong saw 3.3 percent growth in the second quarter, official figures released Friday indicated.

The year-on-year fall in GDP in real terms narrowed to 3.8 percent from 7.8 percent in the first quarter, said Helen Chan, government economist of the Hong Kong Special Administrative Region (HKSAR), when briefing journalists on Hong Kong's economic performance in the second quarter.

Chan said that with the external environment improving, Hong Kong's total exports fell notably less year-on-year in the second quarter and picked up strongly from the first quarter on a seasonally-adjusted basis.

The city's export performance continued to fare relatively better than many other Asian economies in the second quarter.

Services exports also showed a smaller year-on-year rate of decline in the second quarter, helped by the rebound in financial-market activities and stabilization in the global trading environment.

The spread of human swine flu, however, weighed on inbound tourism, said Chan.

Local consumer sentiments recovered during the quarter under the combined effects of more stable employment conditions, a rebound in asset markets and Government relief measures.

Business sentiments, however, remained cautious given the still uncertain global economic outlook.

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 Source : Xinhua  Editor: Ivy
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