Hong Kong reopens further into an uncertain 2023

HONG KONG’S economy is likely to recover next year from a tumultuous 2022, observers told The Business Times, but the path ahead is not necessarily smooth. The city’s ability to attract and retain talent and how it can instill confidence in investors are among the key factors determining how robust its growth will be in 2023.

Analysts told BT they are expecting Hong Kong’s economy to shrink this year, and notch growth of between 1.4 to 3 per cent in 2023, with growth is likely to only pick up significantly in the second half of next year.

They add that the city’s expected growth next year is due to a lower base in 2023, and is largely dependent on how investors and residents are responding to the pace of China’s and Hong Kong’s reopening after three years of Covid-19 restrictions into a dimmer global outlook.