Hong Kong pulled out of recession in the second quarter as GDP jumped 3.3 per cent from the previous quarter, seasonally adjusted, the government said today.
The second-quarter rebound, which confirmed earlier data provided to Reuters, prompted the government to upgrade its full-year 2009 GDP forecast to a contraction of between 3.5 and 4.5 per cent from an earlier estimate for a contraction of 5.5 to 6.5 per cent.
Improving trade flows helped the economy in the second quarter emerge from its deepest recession since the Asian financial crisis in 1997/98.
Analysts had forecast a 1.1 per cent increase in second-quarter GDP from the previous quarter.
However, the economy remains weak. As a trading and financial hub, the territory has been hard hit by the global economic downturn and GDP, compared with a year earlier fell 3.8 per cent in the second quarter, but beat forecasts for a 5 per cent decline.
Hong Kong follows Singapore, which surged out of recession in the second quarter. Germany and France surprised yesterday by announcing that they had emerged from recession in the second quarter, indicating the global economy may be on the mend.
Reuters