August 13, 2010 (Chinavestor) Hong Kong said its second-quarter GDP expand by a better-than-expected 6.5% and the government revised the first quarter growth figure to 8%. The government said Hong Kong’s economy will grow between 5% and 6% this year, a boost to a previously issued forecast.
That may be the good news as Hong Kong is bracing for a property bubble of its own by announcing stricter mortgage and down-payment requirements. The city is also expected to increase the land supply in the hopes of avoiding a real estate bubble. Credit Suisse said real estate prices in the city could rise another 10%-15% this year.
Hong Kong's growth may also cool through the rest of this year because a moderation in China’s expansion will flow through to the city that serves as trading and financial hub for the world’s third- biggest economy, according to Bloomberg News.
Hong Kong's government previously forecasted 2010 GDP growth of 4%-5%. Inflation is expected to be 2.3% this year. Business investment surged in the second quarter, rising 15.2%, compared with a revised 8.2% in the first three months of the year, Bloomberg reported.