Service exports drive HK's 2.7% GDP growth in 1Q24

Exports of services grew 8.4% YoY.

Hong Kong’s economy continued to grow in 1Q24, with gross domestic product (GDP) rising 2.7% YoY.

Exports of services, which grew 8.4% YoY in real terms, were the main driver of economic growth in 1Q24.

Exports of goods likewise rose, improving by 6.8% YoY as external demand turned slightly more favourable.

Other expenditure components that increased in 1Q24 include private consumption (+1.0% YoY) and investment expenditure (+0.3% YoY).

Sharing their outlook, the Census and Statistics Department (C&SD) said it expects exports of goods to "improve further if external demand holds up."

C&SD, however, warned of geopolitical tensions that may cause uncertainties. 

"Domestically, rising employment earnings and the government’s initiatives to boost sentiment should help private consumption, but residents’ changing consumption pattern may pose challenges," C&SD said.