Hong Kong Property Market Helps Third-Quarter GDP Beat Forecastsby
Hong Kong’s economy grew faster than economists forecast last quarter as a rebound in stock trading and the property market helped boost local spending.
Gross domestic product expanded 0.6 percent in the three months through September from the previous three months, the government said in a statement Friday. That compares with the median estimate for 0.3 percent growth from eight analysts surveyed by Bloomberg News. The economy rose 1.9 percent from a year earlier.
"The recovering property market contributed to some domestic activities," said Raymond Yeung, chief greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong. "With the improvement in the Chinese economy, I believe the fourth quarter can maintain current momentum."
Hong Kong’s economy has proved more resilient than many feared, shaking off a contraction at the start of the year as a steady jobs market underpins demand. Exports also improved along with the stabilization in regional trade.
"Domestic demand has remained resilient thus far and should continue to provide support to the economy in the rest of the year," the government said in a statement. GDP growth for 2016 is now forecast at 1.5 percent -- the mid-point of the range forecast of 1 to 2 percent announced in August.
"Given the looming interest rate hike in the U.S., monetary policy divergence among major central banks, possible policy changes in the U.S. after the election, and with the Brexit event unfolding and geopolitical tensions still elevated in various regions, the external environment still faces considerable uncertainties in the period ahead," the government said.