HONG KONG - Hong Kong's economy continued to record moderate growth in the second quarter of this year, with GDP expanding 3.3 percent year-on-year, driven by export and investment growth, official data showed Friday.

The pace quickened from a 2.8-percent growth in the preceding quarter, data from the Hong Kong Special Administrative Region government showed.

The growth was driven mainly by exports, with total exports of goods jumping 7.5 percent year-on-year, supported by sustained external demand. Overall investment expenditure rose 6 percent, contributing to the uptick, while private consumption expenditure turned to a slight decline of 1.5 percent year-on-year, mainly affected by changes in the consumption patterns of residents.

Labor market

The labor market stayed tight in the second quarter, with the seasonally adjusted unemployment rate staying low at 3 percent, the same as the preceding quarter. The underemployment rate also remained unchanged at 1.2 percent.

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Total employment increased by around 5,300 from 3,703,300 in April to June to 3,708,600 from May to July. Over the same period, the labor force also increased by around 8,400 from 3,818,000 to 3,826,400.

The number of unemployed persons (not seasonally adjusted) increased by around 3,100 from 114,700 in April to June 2024 to 117,800 from May to July. The number of underemployed persons also increased by around 3,000 from 44,500 to 47,500 during the same period.

"Looking ahead, the economy should continue to grow in the remainder of the year, but various factors including geopolitical tensions and global economic and interest rates outlook may pose uncertainties on different fronts," said Adolph Leung, an economist with the HKSAR government.

The financial hub's stock market saw notable comeback in the second quarter as market sentiment improved following the announcement of enhancement measures on mutual access between the capital markets of the mainland and Hong Kong, with the benchmark Hang Seng Index jumping markedly to a near 10-month high of 19,636 on May 20.

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For the whole year, the HKSAR government maintained a growth forecast of 2.5 percent to 3.5 percent, the same as forecast in May.

On inflation outlook, the HKSAR government revised the underlying and headline consumer price inflation for 2024 down to 1.3 percent and 1.9 percent respectively, from 1.7 percent and 2.4 percent in the previous review.