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Hong Kong economy
Hong KongHong Kong Economy

Hong Kong to stick with 2% to 3% growth goal despite strong first quarter: Chan

Retail sales in April drop for 14th consecutive month, falling by 2.3 per cent year on year

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The government earlier set its growth forecast for gross domestic product at between 2 and 3 per cent for the year, following a 2.5 per cent year-on-year expansion in 2024. Photo: Nora Tam
Connor MycroftandAmbrose Li
Hong Kong will maintain its economic growth target of between 2 and 3 per cent for this year, the city’s finance chief has said, while describing the anticipated rapid gains in the first quarter as an “exception” rather than the norm.
Financial Secretary Paul Chan Mo-po also said on Monday that authorities would “prepare for the worst” despite the easing of tariffs amid the US-China trade war, but added the recent rise in tourism would help offset sluggish domestic consumption.

The government earlier set its growth forecast for the gross domestic product at between 2 and 3 per cent for the year, following a 2.5 per cent year-on-year expansion in 2024.

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Spending in Hong Kong remained weak, with retail sales in April dropping for a 14th consecutive month, falling by 2.3 per cent year on year to HK$28.9 billion, according to statistics released on Monday. For the first four months, retail sales were down 5.6 per cent over the same period last year.

Chan told lawmakers: “The overall [economic] growth forecast has not been adjusted upwards despite [the first quarter’s] performance.

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“That’s because the rapid growth in the first quarter was the exception rather than the norm, and there may be wild changes in the US government’s policy.

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