China Watch Blog has learnt that the Hong Kong economy slowed further in the first quarter of 2012, with real GDP posting a slight year-on-year growth of 0.4%, after a 3.0% expansion in the fourth quarter of 2011.
The weak performance in the first quarter was mainly dragged by the lull in exports amid a difficult external environment. The domestic sector nevertheless continued to display strength and help cushion the overall economic performance. On a seasonally adjusted quarter-to-quarter comparison, real GDP also grew slightly by 0.4% in the first quarter, similar to that in the preceding quarter.
* Total exports of goods dipped by 5.7% in real terms in the first quarter of 2012 over a year earlier. Although this was partly exaggerated by the exceptionally high base of comparison a year earlier, widespread weaknesses were seen across exports to many regions, including Asia. Exports of services likewise moderated but still grew modestly by 3.6% year-on-year in real terms in the first quarter of 2012, thanks to the strong cushion rendered by thriving inbound tourism.
* On the domestic front, private consumption expenditure held up well on the back of the much improved income conditions, with a further brisk growth of 5.6% year-on-year in real terms in the first quarter. Investment spending also remained strong with a further surge of 12.2% over a year earlier, buttressed by active machinery and equipment acquisition and hectic public sector infrastructure works.
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