, Hong Kong
Photo by Daniam Chou on Unsplash

Hong Kong economy to recover this year despite external headwinds – experts

The city’s economy expanded 1.5% YoY in 2Q23.

Hong Kong recorded an uneven recovery in 2Q23, posting a year-on-year growth but a month-on-month decline.

Despite the uneven recovery and several external headwinds, Hang Seng Bank experts believe that Hong Kong’s economy will recover this year, forecasting a 4.0% growth for 2023.

“The Hong Kong economy showed growth in the first half of this year, with consumption and inbound tourism expected to continue supporting growth in the remainder of the year,” Thomas Shik, chief economist at Hang Seng Bank said.

Shik, however, underscored that the city must not overlook external headwinds such as the high-interest rate environment that could persist for some time and the global economic slowdown which will continue to pose a challenge to the external trade sector.

“The increases in US interest rates have resulted in higher local interest rates, as seen in the upward trend of interbank rates this year. Unless the Federal Reserve signals that interest rate cuts are on the horizon, local interest rates might remain elevated. This could create pressure on business investment and asset markets,” Shik said.

“External trade has been continuously declining since early 2022 and could remain weak in the near future. Due to a lower base of comparison, the decline in exports and imports may ease towards the end of the year,” Shik added.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


HK scraps MPF Offsetting Scheme to enhance employee protection
Starting 2025, employers are no longer allowed to offset long service and severance payments from its Mandatory Provident Fund contributions.