HONG KONG (AP) — Hong Kong trimmed its growth forecast for the year on Friday as the weak global economy weighed heavily on the trade-dependent Asian financial center, mirroring a similar move by regional rival Singapore.
Hong Kong’s economy expanded 1.3 percent in the July-September period from a year earlier, slightly higher than the second quarter’s 1.2 percent growth, the southern Chinese financial center’s government said in a report.
The sluggish expansion prompted the government to trim its full-year growth forecast to 1.2 percent from an earlier prediction of 1 to 2 percent. Singapore, another wealthy Asian financial hub that is reliant on global demand, cut its 2012 growth forecast to 1.5 percent from 2.5 percent on Friday following an anemic third quarter that the government blamed on weak overseas demand.
Hong Kong’s exports rose moderately but the government said there was widespread weakness across the European Union, the U.S. and many major Asian markets.
“External demand remained subdued in the face of the recession-ridden eurozone, slow growing U.S. economy and the ensuing setback in Asian production and trade flows,” the report said.
Exports to the European Union had a double-digit yearly decline while shipments to the U.S. and many major Asian markets were also weak. But exports to mainland China and Japan picked up.
Looking ahead, government economist Helen Chan said Hong Kong could find some relief from an expected rebound in mainland China, predicting that the world’s second-biggest economy would grow faster than the 7.5 percent that officials have predicted this year. But she warned that “the downside risk is still high.”
Hong Kong is a former British colony that’s now a semiautonomous region of China. Its economy has thrived thanks to open markets and a busy port handling a big share of goods from China, but it’s also highly vulnerable to the ups and downs of global trade.
Heather Tan in Singapore contributed to this report.
Follow Kelvin Chan at twitter.com/chanman
More Related Stories
- Here come the tornado truthers. Already
- Peace Corps to allow gay couples to volunteer together
- Moore officials: Funds for "safe rooms" were held up by red tape
- Rand Paul: Congress should apologize to Apple, not the other way around
- Rescue crews race to find tornado survivors
- Looting in Oklahoma?
- Hundreds of low-wage federally contracted workers strike in D.C.
- Okla. mother's tearful reunion with her 8-year-old son
- New campaign compares gun control to anti-LGBT discrimination
- Study: Salt Lake City is gay parenting capital of the U.S.
- Inhofe and Coburn: Red state hypocrites
- Teen activist to meet with Abercrombie CEO
- Watch: Family emerges from storm shelter after tornado
- Must-see morning clip: Barackalypse Now
- Okla. tornado survivor reunited with dog trapped in rubble live on camera
- Is Pope Francis an exorcist?
- Oklahoma death count confirmed at 24, 9 children
- Frantic parents search for children in tornado's wake
- Crews dig through rubble after deadly tornado
- 51 killed in massive Oklahoma tornado
- Don't cry climate-change wolf
Featured Slide Shows
The week in 10 picsclose X
- 1 of 11
Lisa Montgomery embraces her nephew Thursday after a tornado tore apart her home in Cleburne, Texas. The twister killed six people and destroyed entire swaths of the North Texas town.
Credit: AP/LM Otero
Jack McMahon, the defense attorney for abortion doctor Kermit Gosnell, speaks outside the Criminal Justice Center in Philadelphia Tuesday. His client was convicted of killing three babies in his clinic, and will serve multiple life sentences.
Credit: AP/Matt Rourke
A photo taken Monday captures Vice President Joe Biden's response to a Milwaukee second-grader's innovative proposal to end America's epidemic of gun violence. This guy!
Credit: AP/Jenny Aicher
Sen. Rand Paul, R-Ky., flanked by a grouper-eyed Michele Bachmann, addresses the IRS' admission that it targeted Tea Party groups in advance of the 2012 election. In an op-ed for CNN Thursday, the Kentucky senator slammed the president for his faux outrage.
Credit: AP/Molly Riley
Ousted IRS chief Steven Miller is sworn in on Capitol Hill Friday. Miller testified before the House Ways and Means Committee on the extra scrutiny the agency gave conservative groups applying for tax-exempt status.
Credit: AP/J. Scott Applewhite
Attorney General Eric Holder pauses as he testifies on Capitol Hill before the House Judiciary Committee Wednesday. Holder is under fire, among other things, for the Justice Department's gathering of phone records at the Associated Press.
Credit: AP/Carolyn Kaster
O.J. Simpson sits during an evidentiary hearing at Clark County District Court in Las Vegas, Nev., Thursday. Simpson, who is currently serving a nine-to-33-year sentence in state prison for armed robbery and kidnapping, is using a writ of habeas corpus to seek a new trial.
Credit: AP/Las Vegas Review-Journal/Jeff Scheid
Major Tom to ground control: On Sunday astronaut Chris Hadfield recorded the first music video from space, a cover of David Bowie's "Space Oddity."
Credit: AP/NASA/Chris Hadfield
When it rains it pours. President Barack Obama speaks during a news conference Thursday with Turkish Prime Minister Recep Tayyip Erdogan, inexplicably inspiring an #umbrellagate Twitter meme.
Credit: AP/Jacquelyn Martin
A smoke plume rises high above a road block at the intersection of County A and Ross Road east of Solon Springs, Wis., Tuesday. No injuries were reported, but the the wildfire caused evacuations across northwestern Wisconsin.
Credit: AP/The Duluth News-Tribune/Clint Austin
Recent Slide Shows
- 1 of 11