HK s economic growth to slow in H2: report

Write: Ilene [2011-05-20]

HK s economic growth to slow in H2: report

Hong Kong s economy grew 6.5 percent in the second quarter, but both the year-on-year and seasonally adjusted figures signal that the fundamental forces were weakening, said local bank Hang Seng in its latest report.

Hang Seng said it cautiously maintained its full year gross domestic product (GDP) forecast of 5 percent, and see growth slow to a subpar pace of about 3 percent in the second half, from 7.2 percent in the first.

On a year-on-year basis, the second quarter growth eased notably from a revised reading of 8 percent in the first; and the quarter-on-quarter pace of expansion also slowed to 1.4 percent, from 2.1 percent during the same period, suggesting that a peak might have come and gone, said Hang Seng.

Hong Kong government recently raised this year s GDP forecast to 5 percent to 6 percent from an earlier estimate of 4 percent to 5 percent.