Hong Kong Economy Expands 2.7% In Q1

(RTTNews) - Hong Kong's economy expanded for the first time in a year in the first quarter, largely on the back of strong growth in private consumption amid a strong recovery of inbound tourism and domestic demand, the advance estimates from the Census and Statistics Department showed Tuesday.

Gross domestic product advanced 2.7 percent year-over-year in the first quarter, reversing a 4.1 percent fall in the final quarter of 2022.

Further, this was the first expansion since the first quarter of 2022.

On a seasonally adjusted quarter-to-quarter basis, real GDP rose by 5.3 percent, after remaining flat in the preceding three-month period.

On the expenditure-side, private consumption expenditure grew 12.7 percent annually, underpinned by the removal of anti-epidemic measures in both Hong Kong and the Mainland.

Gross fixed capital formation logged a growth of 5.8 percent, and government final consumption increased 0.5 percent.

Meanwhile, exports of goods plunged 18.7 percent, and those of imports fell 14.5 percent.

"Looking ahead, inbound tourism and domestic demand will remain the major drivers of economic growth this year," a government spokesperson said.

"The improving economic situation and prospects should boost domestic demand, though tight financial conditions will remain a constraint."