Financial Secretary Paul Chan stated today (July 27) in a blog post that the estimated GDP figures for the second quarter of this year will be announced this week. Growth is driven by export activities, overall investment, and private consumption, and the upward momentum is expected to persist, marking the tenth consecutive quarter of growth, with private consumption also anticipated to recover. Regarding the recent wave of restaurant closures in Hong Kong, Chan believes that an improving consumer sentiment will provide support for these industries. He also mentioned that he would be attending the "26thAni-com & Games Hong Kong" today to experience the vibrant atmosphere and business opportunities.
Chan noted that the Hong Kong economy has been recovering since 2023, following a growth of 2.5% last year, with a growth of 3.1% in the first quarter of this year. Despite a complex external environment, the local economy has demonstrated strong resilience. He particularly highlighted private consumption, stating that as the economy maintains momentum with continued capital inflow, a favorable stock market, and stabilization in the property market, combined with the government’s strong push for major events and high-value tourism, private entities are actively responding, which brings support to private consumption and market sentiment. He mentioned that retail sales recorded their first year-on-year growth in 14 months in May, indicating initial signs of stabilization in the consumer market, and he is cautiously optimistic about the June figures, expecting that private consumption, which has declined for four consecutive quarters, will rebound in the second quarter of this year.
Chan pointed out that some emerging industries in Hong Kong are accelerating development, while some traditional industry enterprises are actively transforming. However, there are inevitable imbalances between different sectors or enterprises. Labor-intensive industries, such as retail and dining, face greater pressures. Nonetheless, he believes that improving consumer sentiment will support these sectors, and employment conditions in certain industries, like construction, will gradually improve as the property market stabilizes and government construction projects accelerate. He anticipates that the medium to long-term outlook for the Hong Kong economy will be stable with progress, although individual industries still face challenges, the labor market is expected to remain generally stable.
Chan also revealed that the Hong Kong Investment Corporation Limited will lead a delegation of tech companies to Malaysia and Brunei tomorrow to meet with local private equity institutions and industry representatives, seeking more joint investment opportunities in Hong Kong and the Greater Bay Area, and hoping to assist more local companies in broadening their investor backgrounds and exploring more opportunities for product implementation.
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