Hong Kong economy grows 2.7% in first quarter amid rise in exports of services
- Spokesman says service exports will be supported by further revival of inbound tourism and government efforts to promote mega-event economy
- ‘Geopolitical tensions and tight financial conditions will continue to affect exports of goods, but some slight improvement may be seen,’ he adds
Hong Kong’s economy grew 2.7 per cent year on year in the first quarter of 2024, at the lower end of the government’s forecast, as exports of services continued to increase notably due to a rise in visitor arrivals.
Advance estimates released by the Census and Statistics Department on Thursday showed gross domestic product (GDP) growth in the first quarter was in the same range as the government’s full-year forecast of between 2.5 per cent and 3.5 per cent.
Hong Kong’s economy rebounded to less-than-expected 3.2 per cent growth last year from a contraction in 2022, as weak global demand cast a shadow on the city’s post-pandemic recovery.
A government spokesman said exports of services – sales of services to the rest of the world – would be supported by a further revival of inbound tourism alongside the ongoing recovery of handling capacity and the government efforts to promote a mega-event economy.
“Geopolitical tensions and tight financial conditions will continue to affect exports of goods, but some slight improvement may be seen as external demand has held up relatively well so far,” he said.
“Domestically, rising household income and the government’s initiatives to boost sentiment should help private consumption, but the changing consumption pattern of residents may pose challenges.”
The spokesman said ongoing economic growth should lend support to fixed asset investment but added that a longer period of tight financial conditions might have some dampening effects on economic confidence and activities.
