Home Economy UPDATE 1-Hong Kong economy grows 5.4% year on year in third quarter

UPDATE 1-Hong Kong economy grows 5.4% year on year in third quarter

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* Government revises 2021 full-year forecast to 6.4%

* Revises down underlying inflation forecast to 0.7% (Adds comment)

HONG KONG, Nov 12 (Reuters) – Hong Kong’s economy grew 5.4% in the third quarter from a COVID-19 induced slump a year earlier, the government said on Friday, with longer-term prospects hanging on the impact of the city’s zero-COVID policy.

Year-on-year growth slowed from 7.6% in the second quarter.

On a quarterly basis, the economy expanded by a seasonally adjusted 0.1% in July-September. That compared with a contraction of 0.9% in the previous quarter.

“Provided that the local epidemic remains under control, a solid year-on-year growth in the fourth quarter should be attainable for the Hong Kong economy,” the government said in a statement.

The government revised its full-year growth forecast to 6.4%, close to the upper bound of the previous forecast range of 5.5%-6.5%, but revised down full-year underlying CPI forecast for 2021…

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