Hong Kong economy grows less-than-expected 3.2% in 2023, rebounding after previous year’s contraction
- Advance estimates released by Census and Statistics Department
- Economy’s revival continued in fourth quarter, with inbound tourism and private consumption remaining key drivers, government spokesman says
Hong Kong’s economy rebounded to less-than-expected growth of 3.2 per cent last year from a contraction in 2022, as weak global demand cast a shadow on the city’s post-pandemic recovery.
Advance estimates released by the Census and Statistics Department on Wednesday showed gross domestic product (GDP) expanded 4.3 per cent year on year in the fourth quarter. GDP had grown 4.1 per cent in the third quarter, 1.5 per cent in the second and 2.9 per cent in the first.
The return to growth followed a 3.5 per cent contraction in 2022 from 2021.
A government spokesman said the city’s economic revival continued in the fourth quarter of 2023, with inbound tourism and private consumption remaining key drivers.
“Looking ahead, the difficult external environment will continue to pose pressures on Hong Kong’s exports of goods in 2024. The situation may stabilise later in the year if advanced economies cut interest rates as expected,” he said.
The full-year GDP figure was in line with the 3.2 per cent forecast by Financial Secretary Paul Chan Mo-po in November, leaving the economy’s performance short of the government’s earlier estimate of 4 to 5 per cent growth.
On a quarterly basis, the economy improved 0.5 per cent in the fourth quarter from the previous one.