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Hong Kong’s GDP growth picked up considerable pace at the start of the year, notching up its best year-on-year performance since 2011.
Quarterly GDP rose by 0.7 per cent in the three months to March, far exceeding a forecast of 0.2 per cent compiled by Bloomberg, and pushing year on year growth to 4.3 per cent. Growth was helped along by a brightening world economy and strengthening domestic demand, according to the country’s economics ministry.
With an unemployment rate of just 3.2 per cent, Hong Kong is now at “full employment” according to the ministry, which also noted gains real wage growth and an improving trade performance.
But Chang Liu, China economist at Capital Economics, raised doubts over whether the pace of the current upturn can be sustained:
While export growth is likely to remain relatively strong on the back of buoyant external demand, capital spending growth is set to slow in the second half of 2017 as base effects turn less favourable.