ENG-2016 — Page 63

Chapter 3

The Economy

The Hong Kong economy grew moderately in 2016. Economic growth picked up during the year, upon improvement in exports and resilience in domestic demand. The unemployment rate stayed low and inflation eased slightly further.

The Hong Kong economy made moderate growth in 2016, with Gross Domestic Product (GDP) expanding 1.9 per cent in real terms, slower than the 2.4 per cent growth in 2015 and the annual average growth of 2.9 per cent in the past decade. In terms of the quarterly profile, the year-on-year growth rate of real GDP picked up successively, from 1.0 per cent in the first quarter to 1.7 per cent and 2.0 per cent respectively in the second and third quarters, and reached 3.1 per cent in the fourth quarter on the back of an improving external sector and strengthening domestic demand (chart 1).

Chart 1

Quarterly Gross Domestic Product (year-on-year rate of change)

Per cent

20

18

16

14

12

10

8

6

4

2

O

-2

-4

-6

-8

-10

Real GDP

Nominal GDP

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

The Hong Kong economy continued to grow moderately in 2016.

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