Hong Kong's economy continued to grow in the first quarter, with GDP rising 5.6 percent in real terms, Acting Government Economist Helen Chan said on Friday.

The figure marked the 14th consecutive quarter that Hong Kong's GDP growth exceeded the average trend growth.

Chan said that given the outturn so far, Hong Kong's economy should be able to attain GDP growth of 4.5 to 5.5 percent as forecast in the Budget.

According to the figure released from the government of Hong Kong Special Administrative Region (HKSAR), external trade still fared well in the first quarter, as the Chinese mainland's thriving trade flow and strong domestic demand cushioned the continued slack in the U.S. market.

Merchandise exports grew 8.2 percent in real terms. Bolstered by the surge in exports of financial and business services and the expansion of both offshore trade and inbound tourism, exports of services rose 8.4 percent in real terms.

With rising labor income and the wealth effect stemming from the buoyant performance of the stock market, private consumption expenditure grew 5.6 percent in real terms. Overall investment spending grew by 3.9 percent, after several quarters of notable growth.

The economic upturn continued to give rise to a stronger demand for labor, pushing the seasonally adjusted unemployment rate lower to 4.3 percent in the first quarter, Chan said.

Although the global economy is able to sustain strong growth momentum, there are uncertainties that warrant a close watch over, Chan said.

However, continuous economic expansion in Europe and Japan may fill the gap from a slowing U.S. economy, and the vibrant Chinese mainland economy will continue to be a plus factor for Hong Kong, she added.

Chan also said that tighter labor market conditions, the weakness of the U.S. dollar and renminbi appreciation will see cost pressure creep up.

Source: Xinhua