Last year, Hong Kong's economy experienced moderate growth of 2.5% despite a complex and challenging global environment marked by geopolitical instability, trade conflicts, and rising global interest rates. The positive impact of China's steady economic recovery and supportive measures for Hong Kong played a significant role in this growth.
Key Highlights:
Global Context: The International Monetary Fund (IMF) estimated global economic growth at 3.2%. Hong Kong's total exports of goods increased by 4.7% in real terms, supported by strong external demand.
Tourism Recovery: With numerous major events and the recovery of air traffic, visitor numbers rose by about 30%, reaching approximately 45 million. This surge boosted travel and transport services, contributing to a 4.8% growth in total exports of services.
Investment and Consumption: Overall investment expenditure increased by 2.4%. However, private consumption expenditure saw a slight decline of 0.6% due to shifts in local consumption patterns.
Labor Market: The labor market remained tight, with an unemployment rate of 3.1%. Median monthly earnings for full-time employees grew by 4.8% year-on-year in the fourth quarter.
Inflation: Inflation remained mild, with the underlying consumer price inflation rate at 1.1% after accounting for the government's one-off measures.
Asset Markets: Sentiment in asset markets improved, driven by measures from the Central Government and the US rate-cut cycle. The Hang Seng Index increased by 18%, and daily turnover rose by 26%. Funds raised from new listings reached HK$88 billion.
Real Estate Trends: The residential property market adjusted in the first three quarters but stabilized following interest rate cuts. Transactions increased by 23% to about 53,000, while property prices fell by 7%. The non-residential property market remained stagnant.
While facing various external challenges, Hong Kong's economy demonstrated resilience and potential for recovery through strategic measures and market adjustments.
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