HONG KONG- Hong Kong’s economy expanded by 2.7 percent in the first quarter from a year earlier, the government said on Friday, adding that inbound tourism and major business and entertainment events would support growth for the rest of the year.
The economy expanded by 4.3 percent in the fourth quarter of 2023.
“Looking ahead, the Hong Kong economy should record further growth in the rest of the year,” Adolph Leung, a government economist, said in a statement, addingprivate consumption and government support initiatives should bolster growth.
However, Leung also said the changing pattern of residents’ consumption may pose challenges while a longer period of “tight financial conditions” may affect local economic confidence and activity.
On a seasonally adjusted quarterly basis, the economy grew 2.3 percent in the January-March period. That compared with growth of 0.2 percent in the October-December quarter.
The government has maintained its full-year economic growth forecast for 2024 of between 2.5 percent and 3.5 percent .
Hong Kong, a major financial hub, is struggling to bounce back after a three-year COVID-19 lockdown. The recovery has been hampered by a surge in Hong Kong residents travelling to the mainland for shopping and entertainment. They say prices there are generally lower and service is better.
Eight more Chinese cities have joined a scheme allowing their residents to travel to Hong Kong on their own, rather than as part of a tour group, as part of efforts to boost Hong Kong’s economy. The total number of cities in the scheme is now 59.
