Hong Kong’s economy likely to have grown 4.2 pct in Q2

Hong Kong’s second quarter economic data is set to release this week. According to a DBS Bank research report, the economy is likely to have grown 4.2 percent year-on-year in the June quarter. Externally, trade figures came in well in the quarter, with total goods exports rising 9.1 percent.

On the domestic front, retail sales value continued to see double-digit growth in the quarter. This was greatly underpinned by the full-employment and a buoyant equity market. Investment is likely to have held up well amidst the red-hot housing market.

Similarly, government spending should have grown under the new administration on the back of the record high fiscal reserves. But economic growth is expected to deceleration in the half of the year amidst trade war and its potential repercussion on the local economy, stated DBS Bank.