October 31 2023

Hong Kong economy grows 4,1% in Q3

Hong Kong’s economy continued to expand in the third quarter of 2023, registering a 4.1% increase from a year earlier, the Census & Statistics Department announced today.

According to the advance estimates on gross domestic product (GDP) for the third quarter, on a seasonally adjusted quarter-to-quarter basis, GDP increased by 0.1% in real terms in the third quarter of this year compared with the second quarter.

Private consumption expenditure rose 6.5% in the third quarter year-on-year, following a 7.7% increase in the second quarter. Government consumption expenditure fell 4.5% year-on-year, following a 9.8% decrease in the preceding quarter.

Gross domestic fixed capital formation increased by 18.2% in the third quarter over a year earlier, as against the decrease of 0.5% in the second quarter.

Over the same period, total goods exports saw a decline of 8.6%, narrowed from the decrease of 15.1% in the second quarter. Goods imports fell by 6% year-on-year, compared with a 15.8% decline in the preceding quarter.

Exports of services rose by 24% in the third quarter over a year earlier, compared with the 22.8% increase in the second quarter. Imports of services increased by 28.5%, following a 25.4% increase in the preceding quarter.

The Government said that Hong Kong’s economy continued to revive in the third quarter, supported by inbound tourism and private consumption.

Looking ahead, apart from pointing out that inbound tourism and private consumption would continue to underpin economic growth for the rest of the year, the Government stressed that more visitors could be received as handling capacity recovers further.

As regards private consumption, continued improvement in household income and the Government's various support initiatives including Night Vibes Hong Kong should provide support.

However, the Government noted that the difficult external environment amid increasing geopolitical tensions and tight financial conditions would continue to weigh on goods exports and investment and consumption sentiment.

Source: news.gov.hk