HK's economy grows 2.9 pct in Q3

The Hong Kong economy expanded moderately further in the third quarter of 2013, by 2.9 percent in real terms over a year earlier, slightly slower than the 3.2 percent growth in the second quarter, the local government announced Friday.

The government released the city's Third Quarter Economic Report 2013, together with the preliminary figures on Gross Domestic Product (GDP) for the third quarter of 2013.

Acting Government Economist Andrew Au described the economic situation in the third quarter of 2013 and provided the latest GDP and price forecasts for the year.

The external sector, with the notable exception of inbound tourism, was still constrained by the weak global economic conditions.

Meanwhile, domestic demand held firm, with the private consumption expenditure rose moderately by 2.8 percent in the third quarter over a year earlier amid favorable job and income conditions.

The labor market remained in a state of full employment, with the seasonally adjusted unemployment rate staying at 3.3 percent and total employment hitting another record high in the third quarter.

On a seasonally adjusted quarter-to-quarter comparison, real GDP expanded by 0.5 percent in the third quarter, compared to 0.7 percent in the preceding quarter.

Total exports of goods grew by 6.2 percent in real terms in the third quarter over a year earlier. Over the same period, exports of services showed a solid growth of 4.9 percent in real terms thanks to expansions of inbound tourism and cross-border financial activity.

Local stock prices rebounded during the third quarter as Chinese mainland's economic indicators displayed resilience and the prospective Fed tapering did not start in September.

Local property market remained quiet with the increase in flat prices decelerating further amid thin trading during the quarter.