Hong Kong 2014 first-quarter GDP up 2.5% on-year

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Growth in Hong Kong’s economy remained “moderate” year-on-year in the first quarter, dragged by sluggish exports affected by a lack of progress in advanced economies, officials said on Friday.

Gross domestic product grew 2.5 per cent in the first three months of the year ending March 31, compared to the same period last year, a government statement said.

The figure was lower than the previous quarter’s 2.9 per cent, but beat the median forecast of five economists polled by the Wall Street Journal, who expected growth of 2.2 per cent for the quarter.

“Merchandise exports were sluggish, reflecting the slow improvements in the advanced markets,” government economist Helen Chan said in the statement.

Total export of goods declined “markedly” to a year-on-year growth of 0.5 per cent in the first quarter, with weak demand in advanced economies also weighing on regional trade in Asia.

“With the advanced economies likely to show faster growth in the coming quarters, the ensuing better trading environment should bring support to Asia’s exports,” Chan said.

Growth in domestic demand, a key factor in Hong Kong’s economy, was steady with private consumption expenditure growing two per cent year-on-year, but the figure was lower than the preceding quarter’s 3.6 per cent growth.

Domestic demand for the first quarter was also helped by the city’s unemployment rate hitting a 16-year low at 3.1 per cent for the quarter.

The government maintained its prediction for a GDP growth of three to four per cent for the year on hopes of recovery in the world economy and sustained growth from mainland China.

“The sustained solid growth of the mainland economy will also be another mainstay to Hong Kong’s exports going forward. Nonetheless, the external environment is still overcast by considerable uncertainties,” Chan said.

Risks including possible changes in interest rate expectations due to the US Federal Reserve’s further tapering and geopolitical tensions in Eastern Europe are a concern, she said.

“The outlook for the global economy should hopefully brighten up in the rest of the year, barring unexpected relapse stemming from the normalisation of US monetary policy and the geopolitical tensions.”

 

 

 

 

 

Source : Channel News Asia | May 17, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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