Hong Kong economy slows in 2024 as spending, property woes weigh
Gross domestic product rose at a 2.5% annual pace last year
HONG Kong’s economy grew at a slower pace in 2024 as stagnant consumption and a lacklustre property sector weighed on activity, highlighting the risks ahead for Asia’s financial capital amid a looming trade war.
Gross domestic product rose at a 2.5 per cent annual pace last year, according to advance estimates from the Census and Statistics Department on Monday (Feb 3). That matches the government’s forecast and compares to 3.3 per cent in 2023.
Growth accelerated to 2.4 per cent in the fourth quarter, from an upwardly revised 1.9 per cent in the prior three-month period. A Bloomberg survey of economists expected a 2.3 per cent increase.
The annual slowdown underscores the economy’s struggle to regain momentum following the Covid pandemic and widespread protests in 2019. Consumers are reluctant to spend after a dip in housing prices, hitting retailers and investment that already suffered from an exodus of international residents and pullback in Chinese spending.
More risks lie ahead, as President Donald Trump plans 10 per cent tariffs on China – by far Hong Kong’s largest trade and economic partner – and 25 per cent levies on Canada and Mexico.
Hong Kong’s government late last year revised down the growth outlook for 2024 to the lowest end of their earlier forecast. That’s after third quarter data showed the slowest expansion in five quarters.
The International Monetary Fund last month cut its growth forecast for the city to 2.7 per cent in 2025, as Trump’s tariffs are seen hitting China’s economy. BLOOMBERG
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