Hong Kong economy grows 4.1% on yearly basis, but quarterly gain marginal even with tourism, private consumption boost
- Gross domestic product edges up 0.1 per cent in the third quarter compared with the second three months
- Outlook will be boosted by more arrivals, better household income and initiatives such as ‘Night Vibes Hong Kong’, government spokesman says
Hong Kong’s economy recovered further in the third quarter, growing 4.1 per cent year on year, but the gain was marginal on a three-monthly basis even on the back of improvements in tourism and private consumption.
Advance estimates released by the Census and Statistics Department on Tuesday showed the city’s gross domestic product (GDP) edged up 0.1 per cent in the third quarter compared with the second three months.
“Hong Kong’s economy continued to revive in the third quarter of 2023, supported by inbound tourism and private consumption,” a government spokesman said.
He said the outlook would be boosted by more arrivals, better household income and government initiatives such as “Night Vibes Hong Kong” despite continuous challenges amid rising geopolitical tensions and a higher interest rate regime.
During the third quarter, private consumption tapered off to 6.5 per cent growth year on year, from a 7.7 per cent rise in the previous three months.
The government’s consumption expenditure declined 4.5 per cent year on year in the third quarter, lower than the 9.8 per cent in the previous three months.
In August, local authorities revised their full-year GDP forecast for Hong Kong in 2023 from between 3.5 and 5.5 per cent to between 4 and 5 per cent.
In the second quarter, GDP grew at a revised 1.5 per cent from a year ago, down from a 2.9 per cent increase in the first quarter. In 2022, GDP contracted 3.5 per cent from a year earlier.
