Page last updated at 13:37 GMT, Friday, 14 November 2008

Hong Kong slides into recession

Hong Kong's stock exchange
Traders remain upbeat at Hong Kong's stock exchange

Hong Kong's economy has fallen into recession for the first time in five years amid a global economic slowdown.

In the third quarter, the territory's gross domestic product contracted 0.5% on a seasonally adjusted basis, after a 1.4% fall between April and June.

The government's economist, Helen Chan, said domestic demand faltered significantly in October, while exports fell to the lowest level since 2002.

Hong Kong has lowered its forecast growth for 2008, from 4-5% to 3-3.5%.

Last year, Hong Kong's economy grew by 6.4%.

"The global financial turmoil has derailed the economic upturn that Hong Kong has enjoyed for the past four years", said Helen Chan.

She added that unemployment rose marginally to a still relatively low level of 3.4%, while inflation fell significantly in the third quarter, to 4.6%.

Print Sponsor


SEE ALSO
Chinese fund saves Hong Kong arm
13 Nov 08 |  Business
Hong Kong avoids outright panic
30 Sep 08 |  Asia-Pacific
Hong Kong bank recovers from run
25 Sep 08 |  Asia-Pacific
Hong Kong tax cut to boost growth
10 Oct 07 |  Business
Regions and territories: Hong Kong
23 Jan 08 |  Country profiles

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific