Hong Kong's gross domestic product (GDP) grew 0.4 percent in the first quarter from a year ago, slowing from the 3 percent expansion in the fourth quarter of 2011, the city's statistic department said here Friday.
Government economist Helen Chan said the data indicated Hong Kong's economy slowed further. She said the weak performance was mainly due to a lull in exports amid a difficult external environment, however, the domestic sector continued to display strength and helped cushion overall economic performance.
Total exports of goods dipped 5.7 percent over a year earlier, while total exports of services grew 3.6 percent thanks to thriving inbound tourism.
On the domestic front, private consumption expenditure rose 5.6 percent due to improved income conditions. Investment spending also increased 12.2 percent, buttressed by active machinery and equipment acquisition, and public sector infrastructure works.
The downside risks in the external environment remain notable, she said, mainly due to the lingering euro zone sovereign debt crisis.
The stable economy in the Chinese mainland and improved US economy will provide some support to Hong Kong's exports, she said, adding forecast GDP growth remains at 1 percent to 3 percent for 2012 as a whole.
The forecast rates of headline and underlying consumer price inflation for the year remain at 3.5 percent and 4 percent, respectively.
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