Published: 19:56, May 2, 2024 | Updated: 20:59, May 2, 2024
Hong Kong’s GDP grows 2.7% in Q1
By Yang Maoyu
Chinese traditional junk Dukling sails through the Victoria Harbour on Sept 7, 2023. (SHAMIM ASHRAF / CHINA DAILY)

Hong Kong’s first-quarter GDP increased 2.7 percent year-on-year, indicating that the city’s economy grew moderately for the fifth straight quarter, according to advance estimates of the Census and Statistics Department.

In the first quarter of 2024, private consumption expenditures added 1 percent while government consumption expenditure fell 3 percent. Gross domestic fixed capital formation inched up 0.3 percent, much less than the 17.5 percent increase of the preceding quarter.

Hang Seng Bank has maintained its economic growth forecast of 2.8 percent for 2024, given a better-than-expected performance in the first quarter, improved sentiment in the asset price market, robust labor market and the government’s supportive measures to boost tourism

Total exports of goods grew 6.7 percent in real terms over the preceding year, compared with a 2.8 percent increase in the fourth quarter of 2023.

READ MORE: HKU: Hong Kong’s economy expected to grow by 1.7% in Q2

A government spokesperson said that exports of services continued to grow thanks to a further increase in visitor arrivals.

Total exports of services rose 8.1 percent over the preceding year after a 21.2 percent increase in the fourth quarter of 2023.

Financial Secretary Paul Chan Mo-Po wrote in his blog on Sunday that macroeconomic trends provided support to the local retail, catering and transportation sectors, but changing consumption patterns of inbound visitors as well as Hong Kong people venturing north more frequently have weakened the outlook for these sectors.

“Looking ahead, exports of services should be supported by a further revival of inbound tourism alongside the continued recovery of handling capacity and the government’s efforts to promote a mega event economy,” the spokesperson added.

READ MORE: Hong Kong sees significant jump in residents' income in Q4

Hang Seng Bank has maintained its economic growth forecast of 2.8 percent for 2024, given a better-than-expected performance in the first quarter, improved sentiment in the asset price market, robust labor market and the government’s supportive measures to boost tourism, according to Thomas Shik Chun-sing, chief economist and head of economic research at Hang Seng Bank.

Citibank in April forecast a growth rate of only 0.8 percent for the first quarter, with 2.7 percent for the year.

The Chinese Manufacturers’ Association of Hong Kong in February reduced its 2024 economic growth forecast from 3.5 percent to a range of 3 percent to 3.5 percent in light of an uncertain external environment.