Economy grows 1.5% in Q2

July 31, 2023

Hong Kong’s economy continued to expand in the second quarter of 2023, registering a 1.5% increase from a year earlier, the Census & Statistics Department announced today.


On a seasonally adjusted basis gross domestic product (GDP) decreased by 1.3% in real terms in the second quarter compared with the preceding quarter, according to advance estimates.


Private consumption expenditure rose 8.5% in the second quarter year-on-year, following a 13% increase in the first quarter. Government consumption expenditure dropped 9.6% year-on-year, following a 1.3% increase in the preceding quarter.


Gross domestic fixed capital formation decreased by 1% in the second quarter over a year earlier, as against a 7.9% increase in the first quarter.


Over the same period, total goods exports saw a decline of 15.3%, following a decrease of 18.9% in the first quarter. Goods imports fell by 16.1% year-on-year, compared with a 14.6% decline in the preceding quarter.


Exports of services rose by 22.6% in the second quarter over a year earlier, notably higher than the 16.6% increase in the preceding quarter. Imports of services increased 30.2%, following a 20.7% increase in the first quarter.


The Government said that, led by inbound tourism and private consumption, Hong Kong’s economy had continued to recover in the second quarter. 


Looking ahead, it said inbound tourism and private consumption would remain the major drivers of economic growth for the rest of the year. It added that visitor arrivals should increase further as transportation and handling capacity continue to recover.


Exports of goods will continue to face intense pressure, as slower global economic growth weighs on external demand, the Government said.


The revised GDP figures for the second quarter of 2023 and a revised forecast for the whole year will be released on August 11.

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