Gross domestic product (GDP) rose 4 per cent in the third quarter from a year ago, far exceeding economists' forecasts of 2.8 per cent.

Record tourist numbers and improving domestic sentiment lifted spending in retail, leisure and tourism related areas, while the value of exports rose 9.4 per cent in October year on year to nearly HK$165 billion (US$21.2 billion) far outstripping economists estimates of 6.8 per cent growth. Cumulative growth in the first ten months was 11.5 per cent on the same period in 2002.

Hong Kong's International Airport was a major beneficiary, posting a record tonnage throughput of 262,000 tonnes in October, up five per cent on the previous year. Over the past 12 months, a record 2.62 million tonnes of cargo has passed through the airport, up nearly eight per cent year on year.

International survey shows surge in Hong Kong business confidence

Hong Kong business confidence was also reflected in an international survey by accounting firm, Grant Thornton. "It is encouraging to see that Hong Kong stands out in the survey with a strong drive and initiative to develop new markets," said Grant Thornton's chief economist, Kevin O'Shaughnessy, adding that Cepa, coupled with Hong Kong's strong entrepreneurial spirit remains one of our competitive advantages." Click for full survey.

Banks and luxury retailers recognise Hong Kong appeal

The rosy economic outlook is also attracting overseas companies, with banks and luxury retailers among those looking to Hong Kong to serve the Asia region.

UK-based Lloyds TSB Group, Dublin-based DePfa Bank and US-based United Commercial Bank all recently opened offices, adding to Hong Kong's strong financial community.

Luxury retailers have their eyes firmly on the China market, with Louis Vuitton, Prada, Christian Dior, Hermes and Ermenegildo Zegna all recently strengthening their Hong Kong presence. French underwear specialist, Hom, is also opening more stores.

Newcomers include leading German toymaker NICI, which is opening its flagship Asia Pacific store in Hong Kong and, leveraging on local experience, UK retailer French Connection Group plc has teamed up with Hong Kong partner I.T Ltd to open its first store in the territory.

Full details at Economy rebounds in third quarter, up 4%