H.K. economy grows 7.8 percent in 1st quarter, ending shrinking trend

©Kyodo News

Hong Kong's economy grew by 7.8 percent in the first three months of 2021 from a year earlier, ending a six-quarter shrinking trend due to robust external trade and a low comparison base last year, according to official data released Monday.

The territory's gross domestic product showed high growth as total exports of goods jumped 30.6 percent, a big increase from 5.5 percent in the fourth quarter of 2020, according to advance estimates published by the Census and Statistics Department.

"The Hong Kong economy saw a visible recovery in the first quarter of 2021, ending the streak of year-on-year contractions in the preceding six quarters," a government spokesman said in a statement, adding the growth of exports of goods amid the global economic recovery led by China and the U.S. as a driving force in the improvement.

But exports of services fell by 8.7 percent from a year earlier, compared with a decrease of 28.8 percent in the fourth quarter of 2020, reflecting the impact on the service sectors of the coronavirus pandemic.

Private consumption expenditure increased by 1.6 percent over a year earlier, compared with a decline of 6.9 percent in the fourth quarter last year.