Economy Grows 5.4% In Q3

Hong Kong’s economy in the third quarter of 2021 grew 5.4% over a year earlier, the Census & Statistics Department announced today.

According to the advance estimates on gross domestic product (GDP) for the third quarter released today, on a seasonally adjusted quarter-to-quarter comparison, GDP edged up 0.1% in real terms in the third quarter of 2021 compared with the previous quarter.

Private consumption expenditure rose 7% in real terms in the third quarter compared with a year earlier, while government consumption expenditure grew 4.1%. Gross domestic fixed capital formation increased by 11.0%, moderating from the 23.9% growth seen in the second quarter.

Over the same period, total goods exports saw an increase of 14.3% and goods imports grew by 16.5%. Exports of services increased by 4% and imports of services was up by 6.4%.

The Government said Hong Kong’s economy became more entrenched in the third quarter alongside the continued revival of global economic activity and the stable local epidemic situation.

Based on advance estimates, real GDP grew by 5.4% in the third quarter of 2021 over a year earlier, following a 7.6% expansion in the second quarter.

The more moderate year-on-year growth in the third quarter was due to the base effect and the stronger-than-expected economic performance in the first half of the year. For the first three quarters of 2021, real GDP grew 7% over a year earlier.

While goods exports sustained notable year-on-year growth in the third quarter and consumption-related activities revived further, inbound tourism remained virtually frozen, posing a constraint on the pace of economic recovery.

It is therefore essential for citizens to strive towards more widespread COVID-19 vaccination in order to lay the foundation for a broader based economic recovery, the Government emphasised.

Total goods exports posted a double-digit increase over a year earlier on the back of solid external demand. Services exports registered a further moderate increase.

On the domestic front, private consumption expenditure continued to rise appreciably thanks to the stable local epidemic situation, improved labour market conditions and the Consumption Voucher Scheme. Overall investment expenditure grew further as business outlook improved over the past year. 

Looking ahead, the Government expects that the global economic recovery should give further support to Hong Kong’s merchandise exports. However, the threat of the more infectious COVID-19 variants, together with supply bottlenecks in many economies, will continue to pose downside risks to the global economy.

Other risk factors like China-US relations, geopolitical tensions and major central banks’ evolving monetary policies also warrant attention.

Locally, improving employment and income conditions, together with the Consumption Voucher Scheme, should continue to support consumption-related sectors in the near term, the Government added.

The revised GDP figures for the third quarter will be released on November 12.