Hong Kong economy on track for fifth straight quarter of ‘moderate’ growth, finance minister Paul Chan says
- Finance chief Paul Chan vows to pursue new opportunities for economic growth, with local spending set for boost through mega events in coming months
- Official figures to be released this week, but prediction puts economic growth at between 2.5 per cent and 3.5 per cent in first quarter
Hong Kong’s economy is on track to achieve its fifth straight quarter of “moderate” growth, the finance minister has said, vowing to pursue new development opportunities and stimulate local spending through mega events in the coming months.
Financial Secretary Paul Chan Mo-po said on Sunday the government would continue to build on the economy’s traditional strengths while exploring new sources of growth.
He said official figures were expected to show the economy grew between 2.5 per cent and 3.5 per cent in the first quarter, which aligned with the projected full-year growth figure for 2024.
“The advance estimate on GDP for the first quarter is expected to be within the full-year economic growth projection range, reflecting that Hong Kong’s economy will see the fifth consecutive quarter of moderate growth,” Chan wrote in his weekly blog.
Advance estimates on gross domestic product (GDP) for the first three months of the year will be released by the Census and Statistics Department on Thursday.
Real GDP rose by 4.3 per cent year on year in the fourth quarter of 2023, after increasing by 4.1 per cent in the preceding three-month period.
The economy expanded by 3.2 per cent last year, following a contraction of 3.7 per cent in 2022.
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The government has said inbound tourism and private consumption remain key drivers of economic growth this year.
More than 800,000 tourists would visit the city during mainland China’s coming Labour Day “golden week” holiday, Chan said.
The holiday lasts five days on the mainland and begins on May 1.
He also highlighted some of the mega events being held next month, which included the Bun Carnival in Cheung Chau and Vinexpo Asia, saying the city would host more later this year to boost the economy.
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“[We will] create more attractive, new experiences, creating opportunities for consumption and attracting more residents, businesses and tourists to spend in Hong Kong,” Chan said.
Meanwhile, government economists have projected that economic confidence should gradually improve during the year, while exports of goods will increase if leading global economies cut interest rates as expected.
But they have predicted geopolitical tensions and a longer period of tight financial conditions will continue to restrict the pace of recovery.
