China, Hong Kong (4E) – Hong Kong reported a surprisingly slow economic growth in the second quarter due to a decline in tourist spending and weaker domestic demand, prompting authorities to lower economic growth forecast for this year.
In the three months ending June 30, the territory’s gross domestic product (GDP) expanded 1.8 percent from the year-ago period, the lowest level since 2012, according to official data released Friday.
The result missed estimates by economists surveyed by the Wall Street Journal, which forecast a 2 percent rise year-on-year.
The GDP was down compared with the prior quarter’s 2.6 percent gain year on year, as the Hong Kong government cut its growth forecast for the year to 2 to 3 percent from the previous 3 to 4 percent.
Exports of goods rose 2.3 percent on year for the second quarter, driven by a gain in the month of June. The number rose compared with the previous period’s year-on-year uptick of 0.5 percent.
Private consumption increased by 1.2 percent year-on-year for the latest quarter, down from the previous quarter’s year-on-year rise of 2 percent.