Economy grows 3.3% in Q2

Hong Kong’s economy grew 3.3% in the second quarter of 2024 over the same period a year earlier, down from a 2.8% increase in the first quarter, the Census & Statistics Department announced today.

According to the advance estimates, gross domestic product (GDP) increased by 0.4% in real terms in the second quarter of this year on a seasonally adjusted quarter-to-quarter basis.

Private consumption expenditure dropped 1.6% in the second quarter year-on-year, following an increase of 1.2% in the first quarter. Government consumption expenditure rose 2% year-on-year, as against a 2.2% decrease in the first quarter.

Gross domestic fixed capital formation increased by 6% in the second quarter of this year over a year earlier, accelerating from an increase of 0.1% in the preceding quarter.

Over the same period, total goods exports recorded an increase of 7.6% over a year earlier, compared with a 6.8% increase in the first quarter. Goods imports grew 3.4%, compared with a 3.3% increase in the preceding quarter.

Exports of services rose 1.3% in the second quarter over a year earlier, moderating from a 9.4% increase in the first quarter. Imports of services climbed by 12.4%, following an increase of 18% in the preceding quarter.

The Government said the Hong Kong economy continued to record moderate growth in the second quarter and highlighted that total goods exports continued to register strong growth thanks to the sustained external demand.

Looking ahead, it said the economy should continue to grow in the remainder of the year, but performance of different economic segments may vary amid uncertainties on various fronts.

Goods exports should sustain a positive performance if external demand holds up, and further economic expansion should lend support to fixed asset investment.

Meanwhile, heightened geopolitical tensions, escalating trade conflicts, and the US interest rate trajectory remaining not entirely clear may add uncertainties to economic sentiment and activities.

As regards inbound tourism and private consumption, the central government’s various measures benefitting Hong Kong, the Government’s strenuous efforts to boost market sentiment, and improving employment earnings would provide support. However, the changes in consumption patterns of visitors and residents, and the relatively strong Hong Kong dollar may pose further challenges.

The revised GDP figures for the second quarter of 2024 and a revised forecast for the whole year will be released on August 16.