HONG KONG (AP) — Hong Kong's economy grew weakly in the second quarter as the simmering European debt crisis cut demand for exports.

The government warned Friday that "downside risks in the global economy continued to loom large." It lowered the full year economic growth forecast to 1-2 percent from 1-3 percent.

The economy grew a "tepid" 1.1 percent in the April-June quarter compared with the year before. On a quarter-to-quarter basis, the numbers were even worse and showed the economy shrank 0.1 percent.

Exports declined, with Europe the weakest market. Shipments to Europe fell at a double-digit rate.

Hong Kong is a semiautonomous region of China. It's a major Asian financial center with open markets and a busy port handling a big share of goods from China.