Hong Kong economy up 1.8% YoY in Q3

On a seasonally adjusted QoQ basis, real GDP fell by 1.1%.

Hong Kong’s economy grew by 1.8% year-on-year (YoY) in the third quarter of 2024, according to the government’s latest report. However, on a seasonally adjusted quarter-to-quarter basis, real GDP fell by 1.1%.

Exports of goods rose by 4% YoY, though growth was slower due to weaker economic conditions in major markets. Financial, business, and transport services exports increased, but travel services exports continued to decline, affected by changes in visitor spending and a strong Hong Kong dollar.

The labour market remained tight, with the unemployment rate steady at 3%. Employment earnings continued to rise. Private consumption fell by 1.3%, while overall investment expenditure increased by 3.7%.

The government also said the residential property market was quiet for most of the quarter but picked up after the U.S. interest rate cut in September.

Additionally, consumer price inflation remained low, with the underlying Composite Consumer Price Index rising by 1.1%.

Meanwhile, the government expects Hong Kong’s economy to maintain growth despite global uncertainties and trade conflicts. The anticipated monetary easing by major central banks and recent economic stimulus measures from Mainland China are expected to support domestic market activity.

The real GDP growth forecast for 2024 has been revised to 2.5%, down from the previous forecast of 2.5%-3.5%.

Inflation is also expected to remain modest, with underlying inflation revised to 1.1% and headline inflation to 1.7%.