The Hong Kong economy continued to grow in the second quarter, with GDP rising 5.2 percent in real terms, the Hong Kong government said here Tuesday.

According to the government, when compared with the first quarter, external trade was less buoyant in the second quarter. Merchandise exports, having attained continuous strong growth over the past three years, grew more moderately in the second quarter, by 6.4 percent in real terms over a year earlier.

The slackening in export momentum was most apparent in the US market, upon weaker consumer demand there. Exports to most other markets also showed different extents of moderation, partly due to the feed-through of a stronger US dollar in the earlier period.

Yet the vibrant Chinese mainland economy has helped to cushion the impact of weaker performance in other markets. Services exports maintained notable growth momentum, up 8.6 percent in real terms, bolstered by continued growth in offshore trade and vibrant inbound tourism.

Domestic demand held up well. Private consumption expenditure grew 5 percent in real terms, alongside improving employment conditions. This improvement occurred despite large volatility in the stock market in May and June.

Overall investment spending rose 4.3 percent in real terms, with the continued rise in spending on machinery and equipment, at 12.8 percent, more than offsetting the 6.4 percent decline in building and construction spending.

Government Economist Kwok Kwok-chuen said that given the outturn so far and with expected expansion in the second half, Hong Kong's economy should easily attain GDP growth of 4 percent to 5 percent as forecast in the Budget.

With the resilience in domestic demand and with expected further growth in trade, the economic outlook for the rest of the year is for further expansion closer to the past trend growth rate, said Kwok.

Barring any abrupt adverse changes in the external environment, GDP growth for the year is likely to be close to 5 percent, the upper end of the range forecast, Kwok added.

Source: Xinhua