Hong Kong Q2 GDP expands 3.3% on year

HONG Kong’s economy expanded by 3.3 per cent in the second quarter from a year earlier, the government said on Friday (Aug 16), adding that the economy should continue to grow.

The economy expanded by 2.7 per cent in the first quarter of 2024.

“Looking ahead, the economy should continue to grow in the remainder of the year, but various factors including geopolitical tensions and global economic and interest rates outlook may pose uncertainties on different fronts,” Adolph Leung, a government economist, said in a statement.

“Exports of goods should sustain a positive performance if external demand holds up, though trade conflicts would present risks.”

On a seasonally adjusted quarterly basis, the economy grew 0.4 per cent in the April to June period. That compared with a growth of 2.3 per cent in the January to March quarter.

The government has maintained its full-year economic growth forecast for 2024 of between 2.5 and 3.5 per cent.

Hong Kong, a major financial hub, is struggling to bounce back after a three-year Covid-19 lockdown. Although visitor arrivals are increasing, there are signs tourists are spending less.

The recovery has also been hampered by a surge in Hong Kong residents travelling to the mainland for shopping and entertainment. They say prices there are generally lower.

However, more Chinese cities have joined a scheme allowing their residents to travel to Hong Kong on their own, rather than as part of a tour group, as part of efforts to boost Hong Kong’s economy. The total number of cities in the scheme is now 59.

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The Hong Kong Tourism Board said the city received about 25 million visitors in the first seven months of the year, a 52 per cent year-on-year increase. It includes 19.3 million visitors from mainland China, a 47 per cent increase on year. REUTERS