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HK economic growth slows further in 3Q

Source : AP
Last Updated: Sat, Nov 12, 2011 16:15 hrs

Hong Kong's economy slowed again in the third quarter because of the weak global economy and the government warned Friday of more pain to come.

The Hong Kong government said exports to the major U.S. and European markets dropped off sharply toward the end of the August-October quarter "amid an increasingly austere global economic environment."

Government economists said effects of "sluggish final demand" were seen in many other Asian markets.

Hong Kong's economy grew 4.3 percent in the third quarter over the year before. That's smaller than the revised 5.3 percent growth in the second quarter, which was itself less than the 7.5 percent expansion notched up in the first quarter.

The Hong Kong government warned of a dim outlook as the "negative impact" of Europe's debt crisis "intensified" during the quarter while weakness in the U.S. economy also raised concerns.

In light of such poor conditions, "Hong Kong's export outlook in the fourth quarter is bleak," the government said in a statement.

Hong Kong's economy is now forecast to grow 5 percent in 2011, the lower end of the government's forecast range of 5 percent to 6 percent released in August.

Hong Kong is a special administrative region of China. While much of its trade is related to mainland China, it reports its own separate economic data.



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