Hong Kong (AFP) – Hong Kong’s economic growth in the third quarter missed analyst estimates as private consumption weakened, according to government figures released Thursday. Real gross domestic product (GDP) between July and September grew by 1.8 percent year-on-year, well down from a forecast of 3.1 percent growth from economists surveyed by Bloomberg.
Hong Kong’s economic recovery after the pandemic has largely mirrored China’s trajectory, which has also seen slowing growth over the past year. For the first three quarters, Hong Kong’s real GDP increased by 2.6 percent on-year, according to advance estimates from the Census and Statistics Department. A government spokesperson noted that Hong Kong’s economy “continued to expand, though at a moderated pace, in the third quarter.”
The spokesperson added that the city’s economy should continue to grow in the remainder of the year, even though global economic uncertainties and trade conflicts may affect exports. They stated, “Monetary easing across major central banks and an improved outlook for the Mainland (Chinese) economy following the recent introduction of a wide range of stimulus measures would help support sentiment and activities in the domestic market.”
Private consumption decreased by 1.4 percent in the third quarter, which authorities attributed to “the change in residents’ consumption patterns.” Total exports of goods increased by 3.9 percent in the same period, which the government described as “decelerated year-on-year growth alongside softening economic growth in some major markets.” Additionally, increasing cross-border activities between Hong Kong and China contributed to a “mild increase” of 2.4 percent in exports of services.
In response to the city’s lackluster economy, Hong Kong leader John Lee announced a range of policies this month to bolster economic activity, including a proposal to enhance international gold trading. Lee also slashed the import duty on strong liquor and laid out plans to attract foreign capital to Hong Kong.
© 2024 AFP
