HONG KONG (Reuters) – Hong Kong’s economic grew 2.7% in the first quarter on the year, official advance estimates showed on Thursday, driven by an increase in visitor arrivals and private consumption.
That compared with 4.3% growth in the fourth quarter and a revised 4.2%, 1.6% and 2.8% growth in third, second and first quarters, respectively.
The city’s Financial Secretary Paul Chan had on Sunday estimated first quarter GDP to come in within the range of full-year economic growth forecast of between 2.5% and 3.5%, maintaining moderate expansion for a fifth consecutive quarter.
“Looking ahead, exports of services should be supported by further revival of inbound tourism alongside the continued recovery of handling capacity and the government’s efforts to promote a mega event economy,” a government spokesman said.
However, the spokesman said geopolitical tensions and tight financial conditions will continue to affect exports of goods.
“A longer period of tight financial conditions may have some dampening effects on economic confidence and activities,” the spokesman said, adding changing consumption pattern of residents may also pose challenges to private consumption.
On a seasonally adjusted quarterly basis, the economy increased 2.3% in January-March, compared to 0.2% growth in October-December, the data showed.
Private consumption expenditure increased by 1.0% in the quarter, compared to 3.5% growth three months earlier.
Goods exports recorded an increase of 6.7%, compared to 2.8% growth in the fourth quarter.
Imports of goods increased 3.2% in the first quarter, compared to 3.8% in the previous quarter.
(Reporting by Donny Kwok; Editing by Bernadette Baum)
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