3
The Economy
growth in 2017 after a surge in the previous year, while public-sector works picked up notably. A surge in the costs of ownership transfer amid a more active property market also contributed to the annual increase in overall investment spending. Expenditure on acquisitions of machinery, equipment and intellectual property products increased 1.9 per cent in real terms, arresting a trend of annual declines since 2014, as business sentiment stayed generally positive throughout 2017 along with the improved global economic outlook.
Chart 7
Chart 8
Hong Kong's Services Trade (year-on-year rate of change in real terms)
Per cent
10
un
S
-5
-10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 I
2014
Imports of services
Exports of services
Q2 Q3 Q4 Q1
2015
Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016
2017
Exports of services improved visibly in 2017, reverting to a moderate annual growth.
Note:
10
Per cent
5
Exports and imports of services are compiled based on the change of ownership principle.
Main Components of Domestic Demand (year-on-year rate of change in real terms)
Private consumption expenditure
Government
consumption expenditure
-5
Investment expenditure in
terms of gross domestic
-10
fixed capital formation
-15
T
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013
2014
2015
2016
Private consumption expenditure grew strongly in 2017. Investment expenditure resumed moderate growth.
43
Q4
2017
I