TOKYO, May 15, 2018 /PRNewswire/ – FSD Holdings has commented on Hong Kong’s economy as it finished the first quarter on a solid footing, allowing more room for the central bank to consider raising rates as the U.S. Federal Reserve is tightening monetary policy.
Growth at the Asian financial hub was stronger than all economists’ forecasts, resulting in the strongest quarterly expansion in seven years.
According to figures released, FSD Holdings research and analysis department have highlighted that the economy expanded 4.7 per cent in Jan-March quarter, more than double initial forecasts. This reading is also faster than the preceding growth in the previous quarter and the best showing since the economy grew by 5 per cent in the second quarter of 2011.
On a quarter-on-quarter seasonally adjusted basis, the economy expanded by a 3.4 per cent, accelerating from 2.2 percent in 2017’s Q4 quarter.
FSD Holdings economist, Royta Morioka, said that “Hong Kong’s economy to show further moderate expansion in the near term after having benefited from the latest global economic upswing. The uncertainties at home and abroad, as well as a radical approach of Trump’s administration to international trade and foreign policy weigh on prospects.”
The data also confirmed the recovery is broadening out with tourism and shopping among the main drivers of growth in the first three months of the year. Domestic demand also propelled the solid growth, led by the brisk expansion of consumers’ spending.
Further underpinning growth have been the services, which make up two-thirds of the economy. The sector grew 4.2 per cent year-on-year in the first quarter, supported by the finance, insurance and wholesale trade sectors.
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Analysts at FSD Holdings expect this consumption-driven lift in to continue in the second quarter as buoyant equity markets and rising property prices will help spur further growth.
The growth figures also came in at the top end of the Hong Kong Monetary Authority’s forecasts. The still-solid momentum led the government to nudge up its growth outlook over the full year.
Still, the government warned that the prospect of higher interest rates in the United States means the external environment will remain uncertain in 2018.
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SOURCE FSD Holdings
