Car Sales Growth Welcome But Not Related Pollution

In Q211, the Hong Kong economy suffered a 0.5% quarter-on-quarter contraction, giving economic analysts reason to focus on an 11.1% fall in exports. However, BMI believes the Hong Kong economy remains fundamentally sound, a position it shares with the Hong Kong government, which ascribed the fall in exports as a blip resulting from disruptions in the supply chain due to the Japanese earthquake in March. The government reported that domestic demand has remained strong and incoming investment in the economy has remained stable, and as a result the government has maintained its positive forecast that the economy will grow by between 5% and 6% year-on-year (y-o-y) in 2011.

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