Hong Kong expects tourism to drive further economic growth this year, as GDP rises 2.7% in first quarter
- acsandpartnersintl
- May 21, 2024
- 2 min read
Growth figure same as advance estimate, with government saying it will stick with full-year forecast of between 2.5 per cent and 3.5 per cent
Post-Covid pandemic recovery in tourism continued in April, with visitor numbers jumping 100 per cent against a year ago to 14.62 million
Tourism is expected to drive further growth in Hong Kong, the government has said, after confirming the economy expanded by 2.7 per cent in the first quarter against a year ago.
The Census and Statistics Department revealed on Friday the first-quarter figure was the same as its advance estimate, with the government saying it would stick with its full-year growth forecast of between 2.5 per cent and 3.5 per cent.
Government economist Adolf Leung Wing-sing said a continued revival in post-pandemic tourism would help support the export of services as the sector’s handling capacity recovered and authorities pushed to host more mega events.
He also expected goods exports to improve further if external demand held up, despite the uncertainties brought about by geopolitical tensions.
But Leung warned of challenges arising from residents’ changing consumption habits even though the government had launched initiatives to improve market sentiment, as he added that wages were also rising.
“However, a longer period of tight financial conditions may affect local economic confidence and activities,” he said, without specifying the conditions.
The city has been facing the double whammy of a downturn in the property and stock markets for months, which has hampered the “wealth effect” of residents.
Leung said exports of services continued to grow notably by 8.4 per cent year on year in real terms in the first quarter, with exports of travel services jumping higher thanks to the ongoing revival of visitor arrival numbers. Exports of goods increased by 6.8 per cent against last year.
Published: 4:50pm, 17 May 2024
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