Hong Kong GDP Exceeds Expectations, HKD Little Changed
- Hong Kong’s economy grew by 0.7% quarter/quarter in Q1, beating the median forecast of analysts.
- It grew by 4.3% year/year, also above expectations.
Hong Kong’s economy grew faster than expected in the first three months of 2017, with GDP expanding by 0.7% quarter/quarter, above the median forecast of 0.5% in a poll of analysts. Year/year GDP growth was 4.3%, also beating expectations of 3.4% growth.
While the latest quarterly expansion rate was down from the previous 1.2%, growth on the year rose from the prior 3.1% and remains well above the government’s projected range of 2%-3% for 2017. In response, the Hong Kong Dollar was little changed, with USD/HKD trading at 7.7924, compared with 7.7925 just ahead of the release.
The HKD has been of the weakest currencies so far this year, with USD/HKD on an upward trend that so far shows no sign of ending.
Chart: USD/HKD Daily Timeframe (January 1, 2017 to May 12, 2017)
The pickup in GDP growth reflects a strong domestic housing market, an improvement in exports as global trade remains buoyant and firm overseas demand from China, which often imports goods through Hong Kong’s ports.
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at firstname.lastname@example.org
Follow Martin on Twitter @MartinSEssex
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