Hong Kong's recession ends, economy grows 3.3%
Friday, August 14, 2009
According to official records, Hong Kong's economy has left a year-long recession, recording a growth of 3.3% in the second quarter ended in June. The figures, which were seasonally adjusted, were higher than forecast by economists.
As a result, the government has increased its growth predictions for 2009. Previous estimates suggested the economy would contract by 5.5% to 6.5%. Now, the contraction is only predicted to be between 3.5% and 4.5%.
"The GDP data was much better than we expected, partly because the exports were better and partly because of a pick-up in private consumption," Bank of East Asia's chief economist, Paul Tang, noted. "Private consumption is being driven up by stock market gains and by the property sector, which started doing well."
However, government economist Helen Chan warned that "while we are seeing some light at the end of the tunnel, [...] the outlook remain highly uncertain because the situations in the United States and Europe are still very weak."