Hong Kong Economy Grows 0.4 Percent In 3Q

MIN LEE

HONG KONG (AP) — Hong Kong's economy expanded slightly in the third quarter as its financial services and tourism sectors recovered, even though demand from Western countries remained weak, the government said Friday.

Government economists also revised upward their forecast for the entire year, predicting the local economy will contract by 3.3 percent in 2009 — up from the previous forecast of 3.5 percent to 4.5 percent in August.

Hong Kong's gross domestic product inched up 0.4 percent in the July-September period on a seasonally adjusted quarter-to-quarter basis, government economist Helen Chan said in a statement.

The Hong Kong economy grew by 3.3 percent in the second quarter, snapping a yearlong recession as stimulus measures from China and elsewhere helped revive demand and slow job losses in the financial and trading city.

Goods exports continued to fall, dropping 13.2 percent from the same quarter last year, compared to a 12.4 percent drop in the second quarter.

"Although the global economy had entered the initial stage of recovery, import demand in the advanced economies remained sluggish and continued to weigh heavily on exports of Asian economies," Chan said.