Gross Domestic Product rose 5.6% in real terms in the year's first quarter over a year earlier, compared with the 7.3% 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 7.6% in real terms, after 9.6% growth a quarter earlier.

Net output in the wholesale, retail and import and export trades, restaurants and hotels sector grew 7.7% in real terms, compared with the 10% rise in the previous quarter.

Robust growth

Growth in local consumer demand, robust external trade and the expansion of offshore trade and inbound tourism all contributed to the rise.

Net output in the transport, storage and communications sector rose 5% in real terms after a 9.4% rise in the previous quarter. Robust external trade underpinned the growth in transport and storage services. The financing, insurance, real estate and business services sector's net output rose15.2% in real terms compared with the 17.4% increase in the fourth quarter.

The growth impetus came mainly from banking services, on the back of a substantial rise in commission and service income. Also relevant was a leap in net output of the stock brokerage companies, underpinned by a significant rise in stock market turnover.

Net output in the community, social and personal services sector rose 1.3% in real terms, following the 3.2% rise in the previous quarter.

Manufacturing, construction

A fall in net output was seen in the local manufacturing sector. It recorded a 1.5% fall in real terms in the first quarter, compared with the decrease of 1.4% in the fourth quarter.

In the construction sector, net output fell by 4.6% in real terms, following the decrease of 3.1% in the fourth quarter. The fall was mainly attributable to the lack of large infrastructure projects in progress.