Forecast: Hong Kong economy set to grow 4.4% in Q-1 of Y 2011

Hong Kong real gross domestic product (GDP) growth is likely to slow to 4.4% Y-Y in Q-1 of Y 2011, according to a quarterly economic report released by the APEC Study Center of the University of Hong Kong Wednesday.

The report, titled Hong Kong Macroeconomic Forecast, expected the city’s economy to expand by 5.2% in Q-4 of Y 2010, and by 6% in the 2-H of last year.

For the entire Y 2010, the report forecast Hong Kong’s economy to expand 6.6%. Hong Kong’s GDP grew 7.2% in 1-H of Y 2010, according to the report.

The growth is primarily driven by domestic demand. The increase in domestic demand is estimated to contribute 5.5 points of the 6.6% overall GDP growth.

The job market in Hong Kong is expected to be stable with the unemployment rate projected to drop slightly to 4% in both Q-4 of Y 2010 and Q-1 this year.

The report said the inflation is set to be “a big challenge” in Y 2011 for the Hong Kong economy, with headline rate creeping up continuously.

Hong Kong’s inflation rate is forecast to reach 3% in Q-1 this year, up from the projection of 2.4% for the entire Y 2010, according to the report.–Paul A. Ebeling, Jnr. www.livetradingnews.com

Posted by Shayne Heffernan on Jan 5th, 2011and filed underBRIC, Equities, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site