According to government reports, Hong Kong’s economy emerged out of a year long recession as it grew 3.3% benefitting from a strong growth in the Chinese mainland and better conditions in the West.
On a seasonally adjusted quarter to quarter basis, the southern Chinese territory’s economy grew by 3.3% after falling in four consecutive quarters. The turnaround was possible due to increase in demand for Hong Kong’s exports, especially in the Chinese mainland, where growth is driven by large stimulus spending and relaxed monetary policy.
Hong Kong’s Financial Secretary John Tsang said that complacency should be avoided as the global economy is still subject to uncertainties.
Hong Kong made an optimistic forecast that GDP was set to shrink between 3.5% to 4.5% rather than 5.5% to 6.5%. Exports dropped 12.4% in Q2, substantially lower than the 23% fall in the first quarter.
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