Hong Kong Economic Update

Hong Kong's economy expanded by 1.8% in the third quarter from a year earlier, according to government data released on Friday. Continued growth is expected for the remainder of the year, although the forecast for 2024 has been revised to 2.5% from a previous estimate of 2.5%-3.5%.

Quarterly Growth

• Second Quarter: 3.2% growth
• First Quarter: 2.8% growth

Government economist Adolph Leung stated, "While the external environment has turned more challenging recently, the Hong Kong economy is expected to maintain its growth momentum for the remainder of the year."

On a seasonally adjusted quarterly basis, the economy shrank by 1.1% in July-September, a decrease from 0.3% in April-June and 2.5% growth in January-March.

Revised Forecasts

Leung explained that the real GDP growth forecast for 2024 has been adjusted to 2.5% based on this year's outcomes and recent global and local developments. Additionally, the expected rates of underlying and headline consumer price inflation for 2024 have been revised down to 1.1% and 1.7%, respectively, from 1.3% and 1.9%.

Challenges Ahead

Although tourism has rebounded post-COVID, with 46 million visitors anticipated this year, consumption and retail spending remain weak. The city faces challenges such as dried-up stock listings and capital flight.

In his recent policy address, city leader John Lee emphasized the need for economic reform and exploring new growth areas to promote development.