Hong Kong’s economic growth hinges on travel recovery

Advanced GDP estimates showed a drop of 4.5%. 

Hong Kong could still see its economy expand with continued travel activity to and from the city, Finance Secretary Paul Chan said. 

“The interest rate in the US has increased, as expected, by 0.75%. Now the interest rate of the US is at a high level unseen for almost four decades,” Chan said.

“In the Hong Kong situation, the Hong Kong Monetary Authority also raised the base rate accordingly. Given the interest rate environment, external demand would continue to be depressed, which will affect our exports.”

Read more: GDP dips 1.4% YoY in Q2: advance estimates

This comes after the Census and Statistics Department reported that the city’s gross domestic product likely declined by 4.5% in the third quarter of the year. 

“The economic situation has been challenging, but if we are able to put the local COVID-19 situation under control and if we are able to continue to have travellings between Hong Kong and the rest of the world, that would provide added impetus to our economic growth.”