Hong Kong GDP

GDP Growth slows for fifth consecutive quarter in Q2 2019

The Hong Kong’s economy, world’s most service-oriented economy-accounting more than 90 percent of GDP, grew at 0.5 percent Y-o-Y in Q2 2019 compared to 0.6 percent Y-o-Y in Q1 2019. The slow growth was largely driven by sharp fall in fixed investment to 11. 6 percent in Q2 against 7.0 percent fall in Q1 2019.

On global front, slowing global trade led by trade war between US and China and weaker investment were the main factors weighing on economic activities in Q2 2019.

On domestic front, growing domestic political unrest against the anti-extradition bill that gradually morphed through Q2 coupled with slowing Chines economy. Moreover, the increasing violence has affected other sectors such as tourism and capital market.

Private consumption grew 1.1 percent in Q2 from 0.4 percent in Q1 2019, while public consumption growth moderated slightly to 4.2 percent in Q2 from 4.5 percent in Q1 2019.

Outlook of Hong Kong economy

Hong Kong has been facing protest and it has turned into violent protests that affected business and tourism. Externally, the global economic outlook looks weak as forecasted by IMF, World Bank and institutions. Given global uncertainty along with trade war between two biggest economies, Brexit, tensions in Middle East, sluggish manufacturing, concerns over recessions, the economic growth of Hon Kong likely to fall in Q3 2019 as well.