Hong Kong’s gross domestic product (GDP) increased by 7 percent during the second quarter. The gross national income also increased by 8.5 percent, on a year-on-year basis. The data was released by the Census and Statistics Department and comes some time after the Hong Kong Government released its own statement that the GDP rate will grow more than initially predicted. One of our Hong Kong company formation agents
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GDP up by 7 percent in Q2
Hong Kong’s gross domestic product and gross national income (GNI) recorded a significant increase during the second quarter of the year. The data shows that the GDP increased by 7% while the GNI increased by 8.5% to 677.5 billion HK $, on a year-on-year basis.
The gross national income was larger than the gross domestic product in the Special Administrative Region (a difference of 50.4 billion HK $). This difference was the equivalent of 8% of the GDP in the respective quarter and it represents external primary income inflow.
The value of the net external primary income was 50.4 billion HK $ during the second quarter when adding the primary income inflow and the primary income outflow.
Positive economic signals
The GDP and GNI rise and the rise in exports in July
are good indicators of Hong Kong’s positive economic situation. The Government had already issued a prediction earlier this year that the GDP growth per 2017 will be larger than anticipated.
That report also showed that an increase in private consumption and one in investments in Hong Kong were the two main reasons for the GDP prediction revision for 2017.
Investors in Hong Kong are attracted by a low taxation regime, a favorable location in Asia and a welcoming business climate.
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