Hong Kong economy grows 3.3% in second quarter of 2024, but household spending falls
Hong Kong Free Press
Hong Kong’s economy grew by 3.3 per cent from April to June, the Census and Statistics Department has said, led by growth in exports.
“According to the advance estimates, GDP [gross domestic product] increased by 3.3% in real terms in the second quarter of 2024 over a year earlier, compared with the increase of 2.8% in the first quarter,” the department said in a statement on Wednesday.
Goods exports increased by 7.6 per cent compared with the same period last year, showing growth from the first-quarter figure of 6.8 per cent. Imports of goods rose slightly from 3.3 per cent in January to March, to 3.4 per cent in the second quarter.
However, household spending on goods and services fell by 1.6 per cent in real terms in April to June, reflecting a trend of weak consumption that has afflicted the city since all Covid-related curbs were lifted last year.
On a seasonally adjusted quarter-to-quarter basis, GDP grew by 0.4 per cent.
Retail and restaurant expenditure has yet to reach pre-pandemic levels as Hongkongers save their money to spend across the border in mainland Chinese cities such as Shenzhen or further afield.
“Private consumption expenditure turned to a slight decline, affected by the changes in consumption patterns of visitors and residents as well as the strength of the Hong Kong dollar,” the Census and Statistics Department statement said.
“Looking ahead, the economy should continue to grow in the remainder of the year, but performance of the different economic segments may vary amid uncertainties on various fronts.”
See also: Budget-conscious HKers eat away at restaurants’ profits
The department acknowledged that “heightened geopolitical tensions, escalating trade conflicts, and [the] US interest rate trajectory remaining not entirely clear” would continue to impact the city’s economy.
In an effort to increase arrivals and boost the economy, the government has sought to position Hong Kong as the “events capital of Asia,” highlighting existing large-scale happenings such as the Hong Kong Sevens, Art Basel Hong Kong and the Hong Kong Marathon to drive tourism.
Last month, the city’s deputy finance chief Michael Wong predicted that the 210 “mega events” calendared for 2024 would add HK$4.3 billion to the economy.
Chief Executive John Lee said in early July that growing Hong Kong’s economy would be the focus of his third Policy Address, expected in October.
A revised GDP forecast for 2024 will be released on August 16.
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