Hong Kong economy grows by 3.3% in second quarter

“Overall investment expenditure rose further alongside the overall economic growth,” the spokesman said. “However, exports of services saw moderated growth, while 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.

“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.”

The total export of goods jumped by 7.6 per cent from a year earlier, after an annual increase of 6.4 per cent in the first quarter. But private consumption expenditure was down by 1.6 per cent compared with a 1.2 per cent increase in the first three months.

Authorities earlier forecast the full-year GDP growth would be somewhere between 2.5 and 3.5 per cent, year on year.

According to revised figures, GDP grew by 2.8 per cent in the first quarter, year on year, up from 2.7 per cent from the earlier estimate.

The local economy last year rebounded by 3.2 per cent, falling below government estimates, following a contraction in 2022, as weak global demand cast a shadow on the city’s post-pandemic recovery.

Financial Secretary Paul Chan Mo-po on Sunday stressed Hong Kong would cultivate new productive forces, adding that the mainland Chinese economy was providing “the most significant support” to the city.

He also said that an expected cut in interest rates in the second half of the year would encourage investment and boost the performance of asset markets.

In a meeting with Chan last week, the director of the State Council’s Hong Kong and Macau Affairs Office, Xia Baolong, said the city was facing profound shifts in its internal and external environments and called on local authorities to respond by achieving “better development through reform”.

Xia also urged all sectors in Hong Kong to be proactive and determined when working to transform the economy, stressing a need to be singularly focused on doing whatever was necessary to ensure the financial hub’s “golden brand” continued to shine.