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HK Economy Maintains Strong Growth for Third Quarter
The strong growth momentum of the Hong Kong economy in the first half of 2000 was extended well into the third quarter, with GDP again attaining double-digit growth at 10.4 percent in real terms over a year earlier, the government announced on November 24.
According to the government's Third Quarter Economic Report 2000, for the first three quarters of 2000 as a whole, Hong Kong's GDP had a highly robust growth of 11.7 percent in real terms over a year earlier.
On the back of the growth attained in the first three quarters, the government upgraded the forecast GDP growth rate in real terms for 2000 as a whole from the earlier 8.5 percent to 10 percent. Government economist Tang Kwong Yiu attributed the strong growth in the third quarter to increases in export of goods, consumer spending and investment activities.
Externally, Hong Kong's total exports of goods surged by 17.7 percent in real terms in the third quarter of 2000 over a year earlier, bolstered by sustained global demand and improvement in Hong Kong's external competitiveness.
There was also a further marked increase in exports of services, by 12.6 percent in real terms, in the third quarter of 2000. Underpinning this growth were continued leaps in exports of trade-related services and offshore trading activities as well as in inbound tourism.
Locally, consumer spending had a further solid growth of 5.6 percent in real terms in the third quarter of 2000 over a year earlier, upon improved real income and increased employment.
With machinery and equipment acquisition surging further and with construction activity in the public sector resuming increase to set off the continued decline in new building activity in the private sector, overall investment spending accelerated distinctly to a 13-percent growth in real terms in the third quarter of 2000.
Labor market conditions continued to improve, with the seasonally adjusted unemployment rate falling further, from 5 percent in the second quarter to 4.8 percent in the third quarter.
Nominal wages and earnings had bounced back to positive year-on-year growth by the second quarter of 2000.
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