Hong Kong Q2 GDP grows faster than market expectations on improving exports

Hong Kong’s gross domestic product during the second quarter of the year grew at a faster pace, remaining above what markets had earlier expected, partly following improvement in overseas exports.

Hong Kong's economy grew by a faster-than-expected 1.7 percent year over-year in the second quarter, accelerating from the previous quarter's 0.8 percent expansion, government data released showed Friday.

Quarter-on-quarter the economy grew 1.6 per cent, more than three times faster than expectations of 0.5 per cent. It had actually contracted 0.4 per cent in the first quarter. It was the fastest rate of growth since early 2011.

Moreover, the second quarter's total goods exports swung to a 2 percent growth year over year, reversing a 3.6 percent decline recorded in the first quarter, the official data showed. Private consumption rose 0.6 percent from a year ago during the quarter, down from a 1.2 percent expansion in the first quarter.

Meanwhile, the government has forecasted the city's GDP to grow 1-2 percent this year after a 2.4 percent expansion in 2015.