Hong Kong’s economy expanded 3.2 percent in 2023, boosted mainly by tourism and private consumption, according to advance estimates released by the Hong Kong Special Administrative Region (HKSAR) government.
The recovery came after a contraction of 3.7 percent in 2022, data from the Census and Statistics Department showed Wednesday.
Gross Domestic Product (GDP) for the fourth quarter grew 4.3 percent year on year in real terms, after increasing 4.1 percent in the preceding quarter.
In breakdown, private consumption expenditure increased 3.5 percent in real terms in the fourth quarter of 2023 over a year earlier, after an increase of 6.2 percent in the third quarter. For 2023 as a whole, private consumption expenditure increased 7.4 percent in real terms over 2022.
A HKSAR government spokesperson said that the Hong Kong economy continued to revive in the fourth quarter of 2023, with inbound tourism and private consumption remaining key drivers.
Private consumption expenditure turned to a notable increase after the pandemic, supported by rising household income and the HKSAR government’s various initiatives, the spokesperson said. Overall investment expenditure reverted to growth in tandem with economic recovery. Yet, total exports of goods fell further amid challenging external environment.
Looking ahead, difficult external environment will continue to pose pressures on Hong Kong’s exports of goods in 2024, the spokesperson said. The situation may stabilize later in the year if advanced economies cut interest rates as expected. Meanwhile, visitor arrivals should increase further as handling capacity continues to recover, with additional boost from the HKSAR government’s efforts to promote mega events.
Revised figures on GDP and more detailed statistics for the fourth quarter and the whole year of 2023, as well as real GDP growth forecast for 2024 will be released on Feb. 28, 2024 when the 2024-25 budget is announced, the HKSAR government said.
