Chapter 3
The Economy
The Hong Kong economy sustained notable expansion throughout 2017 amid a synchronised global economic upswing. External demand turned stronger and domestic demand was robust. The unemployment rate fell successively to a near 20-year low towards the year end. Inflation eased.
The Hong Kong economy expanded notably in 2017. Gross Domestic Product (GDP) grew 3.8 per cent in real terms, accelerating from 2.1 per cent growth in 2016 and markedly faster than the trend growth of 2.7 per cent in the past 10 years. In terms of the quarterly profile, the year- on-year growth rate of real GDP leaped to 4.3 per cent in the first quarter against a relatively low base of comparison in early 2016, and maintained above-trend growth at 3.9 per cent, 3.7 per cent and 3.4 per cent respectively in the second, third and fourth quarters (chart 1).
Chart 1
Quarterly Gross Domestic Product (year-on-year rate of change)
Per cent
14
Real GDP
12
10
8
6
4
2
O
-2
Nominal GDP
-4
-6
-8
-10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
The Hong Kong economy picked up to expand at an above-trend pace in 2017.
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