Trade war continues to stall Hong Kong's economic expansion
HONG Kong's economy remained subdued in the second quarter of the year with the city reporting a 0
HONG Kong's economy remained subdued in the second quarter of the year with the city reporting a 0.6 per cent year-on-year growth as the bitter trade war between China and the US continued to bite into the city's fortunes.
The growth rate was the same in the first quarter, which was the lowest since 2009.
The GDP figure came in lower that market expectations of 1.6 per cent as a further drop in exports and investment as well as weak local consumption dragged growth.
The economy contracted by 0.3 per cent on a quarterly basis after a 1.3 per cent growth in the first quarter. The government is forecasting annual GDP growth of between 2 and 3 per cent this year.
Exports dropped further in the three-month quarter ended in June, falling 5.4 per cent after a decrease of 3.7 per cent in the previous quarter. Imports widened to seven per cent.
Overall investment took a plunge, diving 12 per cent, after a seven per cent drop in the first quarter.
Domestic consumption remained sluggish, rising 1.2 per cent, slightly higher than the 0.4 per cent growth in the previous three months.