GDP growth eases to 1.5% in 2Q23 

In 1Q23, the economy grew by 2.7%.

Hong Kong’s economy continued to grow in the second quarter, albeit at a slower pace.

Data from Census and Statistics Department (C&SD) showed that gross domestic product (GDP) rose by 1.5% YoY. 

Compared to the 1Q23 growth of 2.7%, the recent GDP figure is 1.3% lower.

According to the Census and Statistics Department (C&SD), the continued improvement in the gross domestic product (GDP) was "mainly attributable to the sustained solid growth in private consumption and services trade.”

In 2Q23, private consumption expenditure rose by 8.5% YoY. Government consumption expenditure, on the other hand, fell 9.6% YoY. 

Total goods exports and imports likewise declined in 2Q23, falling by 15.3% and 16.1% YoY, respectively. 

On the other hand, exports (22.6% YoY) and imports (30.2% YoY) of services rose significantly.

The government expects inbound tourism and domestic demand to remain the major drivers of economic growth this year. 

“As transportation and handling capacity continue to recover, visitor arrivals should increase further. The improving economic situation and prospects should bode well for domestic demand, though tight financial conditions may impose constraints,” a government spokesperson said.

“In particular, improving labour market conditions, together with the government's various measures to boost the momentum of the recovery, will provide additional support to private consumption. Yet, exports of goods will continue to face intense pressure, as slower global economic growth weighs on external demand,” the spokesperson added.