Chart 7
Per cent
15
10
5
0
-5
-10
3
The Economy
Hong Kong's Services Trade (year-on-year rate of change in real terms)
Imports of services
Exports of services
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
| 2012 1
2013
2014 | 2015
2016
Exports of services slackened in 2016, marking the first annual decline in real terms since 1998.
Note: Exports and imports of services are compiled based on the
change of ownership principle.
Compiled based on the change of ownership principle, the goods deficit narrowed somewhat in 2016, reflecting partly the fall in retained imports in the first half of the year amid subpar economic growth and partly the pick-up in the value of goods exports in the latter part of the year. With the services surplus more than offsetting the goods deficit, the combined goods and services account registered a surplus of $50 billion, equivalent to 1.1 per cent of total import value, slightly smaller than the surplus of $57 billion in 2015.
Domestic Demand
Domestic demand displayed much resilience in 2016, marked also by progressive strengthening during the year. Private consumption expenditure was a key growth driver, expanding 1.6 per cent in real terms in 2016 after 4.8 per cent growth in 2015 (chart 8). Private consumption turned stronger gradually in the latter half of the year, as sustained rises in employment and labour earnings supported local consumption sentiment. Government consumption expenditure sustained steady growth of 3.3 per cent in real terms in 2016.
Overall investment spending in terms of gross domestic fixed capital formation showed a slight decline of 0.5 per cent in real terms in 2016, after a 3.2 per cent fall in 2015. It is worth noting the visible rebound in the second half of the year as Hong Kong's overall economy regained momentum. Overall building and construction gathered momentum over the course of the
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