HK GDP Reaches 2.7% Growth in Q1 of 2023
MONEY

Hong Kong Shows GDP Growth of 2.7% over Q1 of 2023

Hong Kong's economy has shown a visible improvement in the first quarter of 2023. According to the latest report released by the government, the real gross domestic product (GDP) has resumed growth, showing a 2.7% increase from a year earlier.

Service exports expanded visibly by 16.5% year-on-year in real terms, with exports of travel services being the most notable increase, thanks to the resumption of normal travel and lifted pandemic restrictions.

Domestically, private consumption expenditure surged by 13% in real terms over the first quarter compared to a year ago, because of increased confidence in spending as well as from consumption stimulus packages.

George Leung, the spokesperson of the Hong Kong government, predicts that inbound tourism and domestic demand will remain the major drivers of economic growth this year.

“Visitor arrivals should recover further as transportation and handling capacity continue to catch up. The improving economic situation and prospects should boost domestic demand, though tight financial conditions will remain a constraint," shares Leung at a press conference on May. 12.

The real GDP growth forecast for the entire fiscal year of 2023 is projected to continue at 3.5% to 5.5%, the same number as announced in the Government Budget. Forecasts for underlying and headline consumer price inflation for 2023 are set to be maintained at 2.5% and 2.9% respectively.

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