Economy grows 1.8% in Q3

Hong Kongâs economy grew 1.8% in the third quarter of 2024 over the same period a year earlier, down from a 3.2% increase in the second quarter, the Census & Statistics Department announced today.

According to the advance estimates, gross domestic product (GDP) decreased by 1.1% in real terms in the third quarter of this year on a seasonally adjusted quarter-to-quarter basis.

Private consumption expenditure dropped 1.4% in the third quarter year-on-year, following a decrease of 1.6% in the second quarter. Government consumption expenditure rose 2.1% year-on-year, as against a 2.2% increase in the second quarter.

Gross domestic fixed capital formation increased by 3.7% in the third quarter of this year over a year earlier, following an increase of 4.1% in the preceding quarter.

Over the same period, total goods exports recorded an increase of 3.9% over a year earlier, moderating from a 7.5% increase in the second quarter. Goods imports grew 2.6%, compared with a 3.4% increase in the preceding quarter.

Exports of services rose 2.4% in the third quarter over a year earlier, as against a 1.1% increase in the second quarter. Imports of services climbed by 8.2%, following an increase of 12.3% in the preceding quarter.

The Government said that Hong Kongâs economy continued to expand in the third quarter of 2024 over a year earlier and highlighted that total goods exports saw decelerated year-on-year growth alongside softening economic growth in some major markets.

Looking ahead, it added that the economy should continue to grow in the remainder of the year. In particular, the gradual easing of financial conditions should bode well for fixed asset investment.

A possible easing of the Hong Kong dollar alongside the US dollar, coupled with the central governmentâs various measures benefitting Hong Kong, the Governmentâs various initiatives to boost market sentiment, and increasing employment earnings are conducive to spending by both residents and visitors in the domestic market. However, the change in their consumption patterns will continue to pose challenges.

The revised GDP figures for the third quarter of 2024 and a revised forecast for the whole year will be released on November 15.