Hong Kong economy slows further amid global gloom

Hong Kong's economic growth slowed further to 2.1 per cent in the first quarter in the face of a sluggish global economy. It was the second consecutive quarter of slowing growth, after slipping from 2.9 per cent to 2.4 per cent in the last quarter of 2014.

The government maintained its forecast that gross domestic product would grow by 1 to 3 per cent for the whole of this year, in line with the Financial Secretary John Tsang Chun-wah's prediction in his February budget.

Weak retail sales - down 2.3 per cent - were also a factor, but tycoon Peter Woo Kwong-ching, who stepped down as Wharf chairman yesterday, played down the figures and advised taking a long view in business dealings, citing a series of lean periods over his decades-long career.

"For strong companies, low times are opportunities because you could surpass your competitors," said Woo, whose company has myriad retail, media and real estate concerns. "Everyone knows how to do it in good times", but only the strong can survive difficult conditions.

Despite the drop in retail sales, Woo said it was not the right time to reduce rents.

The real growth in GDP matched market expectations. It was the smallest increase in three quarters, as the external environment continued to overshadow trade, said acting government economist Andrew Au Sik-hung.

"Global economic growth is quite slow. That's the big picture," he said.