Hong Kong's economy expected grow 2.5-3.5% this year: financial chief
Published: Jun 03, 2024 08:37 PM
The view of Hong Kong Photo: VCG

The view of Hong Kong Photo: VCG

The economy of the Hong Kong Special Administrative Region (HKSAR) is expected to sustain its growth for the rest of 2024 with favorable factors. The city's GDP growth is expected to reach 2.5-3.5 percent, Hong Kong Financial Secretary Paul Chan Mo-po said on Monday.

The HKSAR government will further promote economic development by hosting more events amid the continuous recovery in the hospitality sector, and the revival of inbound tourism will support the services sector, Chan said at a meeting. He noted that improving external demand will also drive up exports.

Chan highlighted the increase in employment, the rebounding stock market and the local government's supportive policies, which he said would boost private consumption, while continued economic growth would support fixed-asset investment.

Hong Kong's economy has achieved a steady recovery, and growth has bright prospects, backed by the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) with the area's advantages in linking core areas of the Chinese mainland with Hong Kong as well as other supportive measures, and the mega-market potential of the Chinese mainland, Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Monday.

The HKSAR's GDP grew 2.7 percent in the first quarter of 2024, the fifth consecutive quarter of growth. Services output remained the major engine of economic development as the city welcomed nearly 11.23 million tourists in the first quarter.

Exports improved in the first quarter, rising by 6.8 percent year-on-year, boosted by slightly better external demand on top of a relatively lower base. The city's overall inflation will remain manageable in the near term, Chan said.

Chan said at the meeting that Europe and the US remain confident in the development of the GBA, based on his earlier visits to France and the US.

"The GBA is a core region linking the Chinese mainland with international markets such as the Belt and Road Initiative partner economies, while Hong Kong remains a major global attraction," Cong said.

Chan said in his blog post on Sunday that he attended the Bay to Bay Dialogue and the US-China High-Level Event on Subnational Climate Action held last week in the US state of California's Bay Area. Chan noted that the GBA and the San Francisco Bay Area have huge cooperation potential, especially with major opportunities in combating climate change at the local level.

In green finance, Hong Kong has been leading Asia in issuing green and sustainable bonds, which have helped the green transformation of the region.

California, meanwhile, has promoted the development of carbon market trading through its policy framework and measures, and it has enabled relevant enterprises to speed up the implementation of carbon reductions, which is a worthwhile model for Hong Kong, Chan noted.

Global Times