HONG KONG: The economy of Hong Kong in the third quarter grew at a faster pace than economists had forecast as a rebound in stock trading and the property market helped spur local spending.
Gross domestic product expanded 0.6% in the three months to Sept 30 from the previous quarter, the government said in a statement on Friday. That compared with the median estimate for 0.3% growth from eight analysts surveyed by Bloomberg News. The economy rose 1.9% from a year earlier.
"The recovering property market contributed to some domestic activities," said Raymond Yeung, chief Greater China economist at ANZ Banking Group 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 stabilisation 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% -- the midpoint of the range of 1-2% announced in August.
"Given the looming interest rate hike in the US, monetary policy divergence among major central banks, possible policy changes in the US 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.