Hong Kong Government Economist Kwok Kwok-chuen says Hong Kong's economy continued to grow in the second quarter, with GDP rising 5.2% in real terms, following exceptionally strong growth of 8% in the previous quarter.
 
This marked the 11th consecutive quarter that GDP growth exceeded the average trend growth of 3.9% in the past decade.
 
Kwok said that given the outturn so far and with expected expansion in the second half, Hong Kong's economy should easily attain GDP growth of 4%-5% as forecast in the Budget.
 
With the resilience in domestic demand and with expected further growth in trade, the economic outlook for the rest of the year is for further expansion closer to the past trend growth rate.
 
Kwok said barring any abrupt adverse changes in the external environment, GDP growth for the year is likely to be close to 5%, the upper end of the range forecast.
 
When compared with the first quarter, external trade was less buoyant. Merchandise exports, having attained continuous strong growth over the past three years, grew more moderately in the second quarter, by 6.4% in real terms over a year earlier.

Moreover, the vibrant mainland economy has helped to cushion the impact of weaker performance in other markets. Services exports maintained notable growth momentum, up 8.6% in real terms, bolstered by continued growth in offshore trade and vibrant inbound tourism.