31st October 2024 – (Hong Kong) Hong Kong’s economic growth decelerated in the third quarter of 2024, with Gross Domestic Product (GDP) rising by 1.8% compared to the same period last year, according to advance estimates released by the Census and Statistics Department (C&SD) today. This marks a slowdown from the 3.2% growth observed in the second quarter of the year.
In a detailed breakdown, private consumption expenditure contracted by 1.4% year-on-year, showing a slight improvement from a 1.6% decline in the previous quarter. In contrast, government consumption expenditure continued to grow, albeit at a slightly reduced rate of 2.1%, down from 2.2% in the second quarter.
Investment saw a positive trend with gross domestic fixed capital formation increasing by 3.7%, although this was lower than the 4.1% growth in the second quarter. The export sector experienced mixed results; while total exports of goods grew by 3.9%, this was a significant drop from the 7.5% increase seen in the previous quarter. Service exports showed a more positive trajectory, rising by 2.4% compared to a 1.1% increase in the second quarter.
On a seasonally adjusted basis, GDP contracted by 1.1% quarter-on-quarter, reflecting ongoing challenges within the economy.
A government spokesperson commented on the results, noting that despite the moderated growth, the economy is expected to maintain its expansion through the end of the year. However, global economic uncertainties and trade tensions continue to pose risks to Hong Kong’s export markets.
Looking forward, economic prospects are cautiously optimistic, supported by monetary easing from major central banks and stimulus measures from the Mainland, which are expected to boost domestic market sentiment and activities. The Hong Kong government is also implementing several initiatives to enhance economic development, including plans to develop the city into a major international gold trading hub and establish a commodity trading ecosystem to strengthen its shipping and maritime services industries.
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