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HK's GDP falls 3.8%

(Xinhua)
Updated: 2009-09-22 10:40

Hong Kong's gross domestic product (GDP) fell 3.8 percent in real terms in the second quarter this year compared to the same period last year, the Census and Statistics Department said Monday.

According to the department, the fall in GDP showed a smaller decrease after the 7.8-percent fall in the first quarter. The second quarter also saw net output in all the service activities taken together drop 3.8 percent in real terms, down on the 7.2 percent decline in the first quarter.

Net output in the wholesale, retail and import and export trade, restaurant and hotel sector decreased by 11.2 percent in real terms, moderating from the fall of 15.7 percent in the first quarter.

The department said the smaller year-on-year rate of decline was attributable to stabilization of the global environment, which has led to a smaller fall in external trade.

Related readings:  HK economy contracts by 2.2% in Q2  Hong Kong economy pulls out of recession

Net output in the transport, storage and communications sector fell 8.8 percent in real terms, same as the first quarter's, as the sector was still under pressure from the slackened external trading environment.

Net output in the financing, insurance, real estate and business services sector decreased marginally by 0.3 percent in real terms, which is significantly smaller than the 6.7 percent decrease in the first quarter. The improvement was attributable to the rebounds in stock trading and more fund-raising activities.

As for the local manufacturing sector, net output dropped by 10. 7 percent in real terms while that for the construction sector fell by 1 percent, after the 7 percent decrease in the first quarter.