Hong Kong’s small businesses are most optimistic about growth outlook since 2011, CPA Australia survey shows

Some 66 per cent of local small businesses expect to achieve growth this year, the highest ratio since 2011, according to a CPA Australia survey
Hong Kong’s economy probably recorded a ‘slight or mild’ growth in the first three months, and could get even better this quarter, finance chief says

Hong Kong economy

Iris Ouyang

Published: 6:01pm, 16 Apr 2023

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Hong Kong’s small businesses are the most confident in 12 years about the business outlook in the city, fuelling their desire to innovate as the government steps up measures to boost economic growth, according to an industry survey.

About 66 per cent of local owners expect their businesses to grow this year, the highest proportion since 2011 in annual surveys conducted by accounting body CPA Australia. A record 74 per cent of those surveyed expect to sell more in overseas markets, according to the latest edition published on Sunday.

“This optimistic sentiment can be partly attributed to the recovery from the low-base of the past three years,” said Cliff Ip, deputy divisional president of CPA Australia for Greater China.

Financial Secretary Chan says the city’s economy could get even better this quarter. Photo: Dickson Lee

Hong Kong’s economy likely recorded a “slight or mild” growth last quarter, Financial Secretary Paul Chan Mo-po said during a local radio programme on Sunday. Growth in the current quarter could be even better as consumption and exports strengthen after the border reopening, he added.

Economists forecast the city’s economy will expand by 3 per cent this year, after shrinking 3.5 per cent in 2022. Retail sales rose 31 per cent in February from a year earlier, the biggest gain in more than a decade. The city recorded 2.45 million tourist arrivals in March, a 68 per cent increase over February.

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Since the reopening, Hong Kong has been busy cementing and boosting external trade with countries in the Middle East and Southeast Asia. It has also hosted major financial forums and investment conferences to recover its appeal as a financial hub.

The city’s incentives helped local small businesses, as the survey found that 74 per cent of them benefited from grants or industry funds. As a result, about 56 per cent of the survey respondents said their businesses grew in 2022, the highest ratio since 2018. Some 65 per cent expect the city’s economy to expand in 2023.

The recruitment outlook has also brightened, as 58 per cent of the small businesses expect to add to their headcount this year, compared with only 26 per cent in 2022.

“Those that maintained innovation and technology at the heart of their business and sought external support weathered Covid-19 the best [last year], and are most likely to thrive in 2023,” the survey concluded.

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