Gross Domestic Product rose 8.2% in real terms in the first quarter over a year earlier, compared with the 7.5% growth in the previous quarter, the Census & Statistics Department says.

Analysed by sector and on a year-on-year comparison, net output in all service sectors taken together rose by 9.8% in real terms, after a 7.7% rise in the fourth quarter of 2005.

Net output in the wholesale, retail and import and export trades, restaurants and hotels rose 12.3% in real terms, after a 10.9% rise a quarter earlier.

This was mainly attributable to the continued robust performance of Hong Kong's external trade, supported by the generally favourable external environment and the Mainland's buoyant trade flows.

An increase in retail trade and restaurants and hotels' net output - due to solid growth in consumer demand and inbound tourism - also contributed.

Net output in transport, storage and communications rose 16.2% in real terms, after a 13.5% rise a quarter earlier. Robust external trade underpinned the strong growth in these areas.

Financing, insurance, real estate and business services' net output was up 12.9% in real terms, after a 7.6% rise a quarter earlier. 

The result was mainly due to strong growth in the banking services, on the back of a substantial increase in commission and service income. Also contributing was a leap in stock brokerage companies' net output, underpinned by the significant increase in stock market turnover in Q1.

Net output in community, social and personal services and local manufacturing sector also rose 1.8% and 7% in real terms, following 1.5% and 5.9% rise in Q4 last year.

Construction, utilities see declines

Decline in net output was seen in the construction sector. It recorded a 9.7% decline year-on-year, following a decrease of 12.4% in earlier quarter. The decline was due to the fall-off in public-sector construction along with the winding down of some major projects such as the Shenzhen-Hong Kong Western Corridor and Deep Bay Link.