Aug. 17 (Bloomberg) -- Hong Kong's economic growth probably accelerated in the second quarter as a jobless rate at a nine- year low fueled consumer spending.

Gross domestic product rose 6.2 percent from a year earlier after gaining 5.6 percent the previous quarter, according to the median forecast of 14 economists in a Bloomberg News survey. The figures are due at 4:30 p.m. today.

Hong Kong will extend its longest economic expansion in almost a decade as neighboring China overtakes the U.S. this year as the largest contributor to global growth. Low unemployment and rising wages are driving demand for everything from apartments to flowers in the former British colony, a financial and transport hub for Chinese businesses.

``Hong Kong's domestic economy has continued to boom,'' said Wang Qian, a JPMorgan Chase & Co. economist based in the city of 7 million people. ``Strong demand for trade and financial services from mainland China'' has added jobs and boosted wages.

Growth from the first quarter was 1.2 percent, according to the survey, up from 0.5 percent.

``The drivers of Hong Kong's expansion remain strong,'' Mark Williams, an economist at Capital Economics Ltd. in London, wrote in a report. ``Consumption is growing rapidly, while export and import growth is stable at high levels.''

Hong Kong's unemployment fell to a seasonally-adjusted 4.2 percent, the lowest rate in nine years, in the three months to June 30. That's encouraging private consumption, which last year accounted for 52 percent of the economy.

100 Flowers

``Ordering 100 flowers is very common,'' said Grace Yu, a manager at Anglo Chinese Florist Ltd. ``There's also been a sharp increase in orders from property developers for the launches of new buildings.''

Retail sales climbed 14.3 percent in June from a year earlier, the biggest gain in four months. Tourists have boosted consumption, with visitor numbers rising 6.8 percent to more than 13 million in the first six months of the year.

Hong Kong's shoppers are increasing Switzerland's watch exports. Shipments to the city rose 27 percent in June from a year earlier to 208.6 million francs ($173 million), according to the Federation of the Swiss Watch Industry. That was close to the 212.7 million franc value of exports to the U.S.

``We're seeing strong sales of luxury goods, vehicles and office equipment,'' said Joe Lo, a senior economist at Citigroup Inc. in Hong Kong. ``Consumers are confident and business investment is very bullish.''

Home sales surged 73 percent to HK$109.3 billion ($14 billion) from a year earlier in the second quarter.

Moody's Upgrade

Moody's upgraded Hong Kong's debt rating last month to Aa2, the third-highest ranking, from Aa3, citing the strength of government finances. Standard & Poor's raised the outlook for the city's AA rating to positive from stable.

China's economy expanded in the second quarter by 11.9 percent, the fastest pace in more than 12 years. The International Monetary Fund last month predicted the nation will be the biggest contributor to a global expansion of 5.3 percent.

The volume of Hong Kong's exports to the mainland increased 16.7 percent in June from a year earlier.

The city's economy expanded 6.8 percent in 2006. Private consumption grew 5.1 percent and accounted for 52 percent of GDP, according to the Asian Development Bank.

Fixed capital investment, which accounted for 23 percent of the economy, expanded 7.9 percent. Net exports, a measure of the difference between exports and imports, represented 17.5 percent of GDP and grew 12.6 percent.

Second-quarter growth will extend the city's economic expansion to four years.

Slowdowns overseas may pose risks. Hong Kong's benchmark stock index plunged yesterday the most since the Sept. 11 terrorist attacks of 2001. Investors are concerned mortgage losses in the U.S. threaten global growth.

The following table shows 14 economists' estimates for gross domestic product growth in the second quarter.

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                              YoY%  QoQ% sa     GDP
Firm                            2Q       2Q     2007
----------------------------------------------------
Median                        6.2%     1.2%     5.5%
Average                       6.2%     1.2%     5.6%
High                          7.3%     2.1%     6.7%
Low                           5.3%     0.3%     4.7%
Number of Estimates             14        8       11
----------------------------------------------------
Action Economics              7.3%     1.8%     5.7%
Bank of China (Hong Kong)     5.3%     1.1%     5.0%
Bank of East Asia             6.3%       --     6.0%
Capital Economics             6.5%       --     6.7%
Citi                          6.3%     1.5%     6.0%
Deutsche Bank                 6.1%       --       --
Hang Seng Bank                6.5%       --     5.6%
HSBC                          5.6%       --     5.4%
ING Groep NV                  6.0%     1.2%     5.5%
JPMorgan Chase                6.0%     1.1%     5.3%
Lehman Brothers               6.9%     2.1%       --
Nomura Securities             5.5%     0.8%     5.5%
Standard Chartered            5.7%     0.3%       --
UBS                           6.3%       --     4.7%
----------------------------------------------------

To contact the reporter on this story: Wendy Leung in Hong Kong at wleung12@bloomberg.net

Last Updated: August 16, 2007 12:00 EDT