Financial Secretary Paul Chan recently announced that Hong Kong’s gross domestic product (GDP) will grow between 2.5 and 3.5 percent during the first quarter of the year. This forecast indicates the moderate growth that it has sustained for the fifth consecutive quarter.
Chan expects the GDP growth for January-March to align with the 2024 economic growth forecast. However, he did not elaborate on the details of the forecast in his blog. Hong Kong will release the January-March GDP data on Thursday. In February, Chan forecasted an annual GDP growth range of 2.5 percent to 3.5 percent for the Asian financial hub, following a 3.2 percent expansion in 2023.
As Hong Kong explores new avenues for economic expansion, Chan highlighted the importance of mega events such as fireworks displays in attracting tourists. He mentioned plans to host such events to entice more visitors to the city.
Notably, Hong Kong anticipates welcoming approximately 800,000 visitors during China’s Labour Day holiday on Wednesday. By capitalizing on high-profile events and attracting visitors, the city aims to bolster its economic resilience and promote sustained development.
Read: U.S. inflation rises to 2.7 percent in March, Fed likely to hold rates next week
Despite ongoing uncertainties and challenges, including geopolitical tensions and the impact of the COVID-19 pandemic, Hong Kong has made an exponential recovery. In 2020, Hong Kong’s GDP contracted by 6.1 percent following declines in 2019. COVID-19 contributed to the region’s most severe annual contraction on record. However, through proactive measures and strategic initiatives, the city navigated these challenges and capitalized on opportunities for sustainable growth.
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