Hong Kong first quarter GDP increases 7.2pc, exports rise 16.8pc

HONG KONG's first quarter gross domestic product (GDP) increased 7.2 per cent year on year on the back of thriving Asian and emerging markets, say government economists.


First quarter merchandise exports increased 16.8 per cent while exports of services rose 9.1 per cent year on year with the export of financial and business services leading.


Seasonally adjusted unemployment was down to 3.4 per cent in the first quarter, back to the post-1997 low of 3.3 per cent in mid-2008 with wages and profits also increasing. The median household income rose 5.6 per cent in the first quarter in nominal terms year on year, or by 1.7 per cent in real terms after discounting inflation.


Hong Kong Government economist Helen Chan said the GDP rate increase was higher than the expected seven per cent gain for full-year 2010, marking the fifth consecutive quarter of growth, which was above average for the last decade.


Underlying consumer price inflation rose to 3.7 per cent in the first quarter from 2.4 per cent in the fourth quarter of last year. Further price pressures come from rising imported inflation and local costs, said Ms Chan.


Government economists have upwardly revised expectations of rates of price inflation for the full year at 5.5 per cent, from the 4.5 per cent first predicted in February.


Ms Chan said merchandise exports resumed the strong uptrend in the first quarter, surging by 16.8 per cent year on year. Exports of services increased 9.1 per cent, with major gains financial and business services.


On the domestic front, private consumption expenditure grew 7.6 per cent on the back of improving job and incomes. Flat prices rose nine per cent during the first quarter, surpassing the peak in 1997.
(Source:http://www.schednet.com)