Hong Kong's 4Q GDP up 1.1%

Full-year growth for 2013 came in at 2.9%.

According to BBVA Research, fourth quarter GDP rose to 1.1% s.a q/q (3.0% y/y) from 0.7% in Q3, in line with expectations, bringing full-year growth for 2013 to 2.9% (BBVA: 3.1%).

Here's more:

Growth in 2013 picked up from the previous year (1.5%) on improving external demand and robust private consumption. Today also featured the annual budget speech, in which the government maintained its GDP growth forecast at 3-4% (BBVA: 3.7%).

For a tenth year in a row, the government expects a surplus, of 0.9% of GDP in FY2013/14 (year ending in March), down from 1.6% in FY 2012/2013. For 2014/15, the government plans to retain various relief packages, but on a more limited and more targeted basis than in the past, by reducing public housing subsidies and a property tax waiver, as well as eliminating untargeted electricity subsidies.

Key themes focused on the impact of ageing population on future growth and revenue, as well as efforts to maintain Hong Kong’s competitiveness as an international hub.