Hong Kong’s GDP in the first quarter of 2024 increased by 2.7% year-on-year

The Hong Kong SAR government held a press conference on the 17th and announced that the real gross domestic product (GDP) in the first quarter of this year increased by 2.7% year-on-year, which was the same as the pre-estimated figure; the SAR government also maintained its full-year economic growth forecast of 2.5% to 3.5%.

Service exports remain an important driving force for Hong Kong's economic growth, with real year-on-year growth of 8.4% in the first quarter. Benefiting from the continued rebound in the number of tourists visiting Hong Kong, the export of tourism services has further jumped. The export of transportation services continued to rise, and the export of commercial and other services increased slightly.

With external demand improving slightly, overall exports of goods increased by 6.8%. Among them, exports to the mainland soared, exports to the United States fell slightly, and exports to the European Union recorded double-digit declines.

Locally, the seasonally adjusted unemployment rate remained at a low level of 3%, and the underemployment rate was also at a low level of 1.1%. Employment income continues to grow steadily. Private consumption expenditure rose slightly by 1% year-on-year in real terms in the first quarter, supported by rising incomes and the government's various measures to boost sentiment.

Looking to the future, government economic adviser Leung Wing-sheng told a reporter from Asia Pacific Chinese Television that Hong Kong's economy should record further growth in the rest of this year. As reception capacity recovers and the government strives to promote the event economy, further recovery in inbound tourism should support service exports. On the local front, changes in citizens’ consumption patterns may bring challenges, which require industry cooperation to enhance competitiveness.