Hong Kong set to post growth for second quarter, as exports expand 12.5%

City will also cultivate new productive forces, finance chief says, but economists caution against excessive optimism

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The government is due to reveal the advanced estimate for the second quarter’s GDP figure on Tuesday. Photo: Sam Tsang

Published: 1:40pm, 28 Jul 2024Updated: 11:40pm, 28 Jul 2024

Hong Kong is set to record further growth in the second quarter following a double-digit increase in the export of goods, the finance chief has said, stressing the city will cultivate new productive forces as it continues to tap into the national momentum.

Financial Secretary Paul Chan Mo-po also said on Sunday an expected cut in interest rates in the second half of the year would encourage investment and boost the performance of asset markets.

The minister revealed the value of merchandise exports grew by 12.5 per cent in the second quarter compared with a year ago.

“Recent figures also show an increase in exports of goods and overall investment,” he said on his weekly blog. “The country’s economy remains stable and is progressing, providing the most significant support for Hong Kong’s economy.

“Many companies are actively pursuing plans to list in Hong Kong. The string of national policies benefiting Hong Kong is expected to play a supporting role in different economic sectors when they are rolled out successively.”

In the first quarter, the city’s gross domestic product (GDP) expanded by 2.7 per cent compared with the same period last year, climbing at the lower end of the government’s forecast. On a full-year basis, GDP is expected to grow by between 2.5 and 3.5 per cent, with the advance estimate for the second quarter due on Wednesday.