HONG KONG, Nov 16, 2007 (AFP) - Hong Kong's economy in the third quarter to September remained robust, growing 6.2 percent year-on-year, the government said, on the back of strong private consumption.

Acting government economist Helen Chan said she now expects GDP growth for the year to reach 6.0 percent, at the upper end of official forecasts at the end of the second quarter.

"Given the prevailing strength in domestic demand, the Hong Kong economy should be able to attain 6.0 percent growth in real terms for 2007 as a whole," she said in a statement, adding the performance was the 16th consecutive quarter of distinctly above-trend growth.

Merchandise exports expanded 6.4 percent in the quarter, while private consumption spending grew 9.7 percent, providing the backbone of the strong economic performance. Investment spending was up 2.0 percent.

Exports to the mainland and many other emerging markets were robust, the statement said, while those to the EU grew. However, exports to the United States and Japan were lacklustre.

Meanwhile, strong tourist figures, vibrant financial market activity and a continued surge in offshore trade drove a strong performance in exports of services, up by 12.3 percent in real terms.

Chan added that while the government expects inflation to rise in the fourth quarter due to higher food prices, composite consumer CPI inflation for the whole year will reach an estimated 2.0 percent.

"GDP grew 6.2 percent because of the remarkable growth in private consumption, which in turn, was helped by the buoyant equity market," said Paul Tang, economist at Bank of East Asia.

He added that economists are expecting GDP growth to ease slightly in the fourth quarter mainly because of the weakening US economy.

"Even in this quarter the export growth and investment spending grew at a lower rate and in the fourth quarter, we expect it to slow down further as the downturn in the US economy will weigh on the strong consumption growth," said Tang of Bank of East Asia.