November 1, 2023
HONG KONG – Hong Kong’s economy grew further in the third quarter of 2023 due to the further improvement in domestic demand and services trade, government data showed on Tuesday.
According to advance estimates, the city’s gross domestic product increased by 4.1 percent in real terms in the third quarter over a year earlier, compared with the 1.5 percent rise in the previous quarter, according to the Census and Statistics Department.
On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.1 percent in real terms in the third quarter when compared with the second quarter.
Private consumption expenditure increased by 6.5 percent, government consumption expenditure declined by 4.5 percent, while gross domestic fixed capital formation grew by 18.2 percent.
On the other hand, total exports of goods measured in national accounts terms slid by of 8.6 percent, narrowing from the decrease of 15.1 percent in the second quarter. Imports of goods measured in fell by 6.0 percent, compared with the 15.8 percent decline in the previous quarter.
A Hong Kong Special Administrative Region government spokesman said that the territory’s economy continued to revive in the third quarter of 2023, supported by inbound tourism and private consumption.
The Hong Kong Tourism Board said last month that over 20 million visitor arrivals were recorded from January to August. Of this number, 16.5 million were visitors from the Chinese mainland.
The spokesman said private consumption expenditure increased further alongside rising household income and the government’s various support initiatives, though the rate of increase moderated somewhat.
Overall investment expenditure rebounded sharply against a low base of comparison a year ago, he added.
Looking ahead, the spokesman said that inbound tourism and private consumption will continue to underpin economic growth for the rest of the year.
More visitors could be received as handling capacity recovers further while the continued improvement in household income and the HKSAR government’s various support initiatives including “Night Vibes Hong Kong” should provide support for private consumption.
However, the difficult external environment amid increasing geopolitical tensions and tight financial conditions would continue to weigh on exports of goods and investment and consumption sentiment, he added.
The spokesman also said that the revised GDP figures and more detailed statistics for the third quarter, and the revised GDP forecast for 2023, will be released on Nov 10.