The Census and Statistics Department (C&SD) announced that preliminary estimates show the local GDP grew by 1.8% in the third quarter compared to the same period last year, a slowdown from the 3.2% growth in the second quarter. The cumulative real GDP growth for the first three quarters of the year is 2.6%.
In the third quarter, private consumption expenditure fell by 1.4% year-on-year, while government spending saw a real increase of 2.1%. Gross fixed capital formation rose by 3.7% in real terms. Exports of goods increased by 3.9% in real terms, and imports of goods grew by 2.6%. Services exports increased by 2.4% in real terms, while imports of services rose by 8.2%. Seasonally adjusted, the real GDP fell by 1.1% quarter-on-quarter in the third quarter.
A government spokesperson said that the local economy continued to expand year-on-year in the third quarter, although at a slower pace due to economic slowdowns in some major markets, which has moderated the annual growth in overall goods exports. Growth in services exports was supported by increased cross-border economic activities. Overall investment spending increased further with economic growth. However, changes in consumer spending patterns continued to push private consumption expenditure downward.
Looking ahead, the economy is expected to continue growing for the remainder of the year. Global economic uncertainties and trade frictions may impact Hong Kong's performance in goods exports, but relaxed monetary policies by major central banks and an improved economic outlook in Mainland China, following recent stimulus measures, should support local market sentiment and activity.
The spokesperson noted that gradually easing financial conditions should benefit fixed asset investment. The Hong Kong dollar might weaken alongside the US dollar, and various measures from the central government to benefit Hong Kong, local government initiatives to boost market sentiment, and increases in employment income are expected to drive local consumption by residents and tourists, although changing consumption patterns will continue to pose challenges.
Related News:
New reward scheme for reporting public housing abuse to launch in January 2025
McDonald's offers free apple pie for Hello Kitty's 50th anniversary tomorrow
Comment