HK economy grows 2.7% in Q1
Q1 ended the four consecutive quarters of GDP decline.
Hong Kong’s economy has rebounded after four consecutive quarters of decline, rising 2.7% YoY in 1Q23.
On a quarter-on-quarter comparison, the economy increased by 5.3%.
According to the Census and Statistics Department (C&SD), the improvement in the gross domestic product (GDP) was "mainly attributable to the visible increase in domestic demand.
In Q1, both private and government consumption expenditure grew, increasing by 12.5% YoY and 0.5% YTY, respectively.
During the same period, exports (16.9% YoY) and imports (20.6% YoY) of services rose significantly.
On the flip side, total goods exports (-18.7% YoY) and imports (-14.5% YoY) continued to decline.
The government expects inbound tourism and domestic demand to remain the major drivers of economic growth this year.
“Visitor arrivals should recover further as transportation and handling capacity continue to catch up. The improving economic situation and prospects should boost domestic demand, though tight financial conditions will remain a constraint.” a government spokesperson said.
“The continued improvement of the labour market and the disbursement of a new round of consumption vouchers will render further support to private consumption,” the spokesperson added.