The Hong Kong Economy expanded at a markedly slower rate in the first quarter, hurt by a slump in n exports amid a difficult external environment, data released by the Census and Statistics Department showed Friday.

Gross domestic product (GDP) increased 0.4 percent year-on-year in the first quarter, notably slower than the 3 percent growth seen in the fourth quarter. Economists were looking for a 1.1 percent annual growth.

Quarter-to-quarter, the GDP increased s seasonally adjusted 0.4 percent during the quarter, in line with the growth recorded in in the preceding quarter.

The agency said Hong Kong's economy is set to gradually regain momentum in the coming quarters. The economy is expected to expand in the 1-3% percent range in 2012, as announced earlier. Headline and underlying consumer price inflation are still expected to be 3.5 percent and 4 percent respectively in the whole of 2012, it said.

RTTNews