FX.co ★ Hong Kong Economic Growth Improves To 2.4%

The latest figures from Hong Kong's Census and Statistics Department reveal an accelerated growth in the region's economy during the last quarter of 2024. Specifically, the gross domestic product (GDP) saw a 2.4% increase year-over-year for the fourth quarter, an improvement from the 1.9% growth experienced in the third quarter.

When adjusted seasonally and examined on a quarter-to-quarter basis, real GDP rose by 0.8% in comparison to the preceding quarter.

Analyzing by expenditure, government consumption expenditure recorded an annual growth of 1.9%, up from a 1.7% increase noted in the September quarter. The decline in household consumption moderated to 0.2%, improving from a previous 1.2% drop.

Exports of goods showed a positive growth of 1.2%, with imports increasing slightly by 0.1%. Service exports grew by 5.6%, while imports of services surged by 8.7%.

For the entirety of 2024, GDP grew by 2.5%, a slight downturn from the 3.2% growth achieved in 2023; improved external demand helped total exports of goods to recover. The growth in the outflow of services was largely attributed to a rise in visitor arrivals and enhancements in cross-border economic activities.

Looking forward, a government spokesperson expressed optimism about Hong Kong's economic growth prospects in 2025, despite uncertainties in the global economic landscape. They noted that US trade protectionist measures might disrupt global trade, potentially affecting Hong Kong's goods exports. Such developments could lead to a slower pace of interest rate reductions in the US, sustaining a strong Hong Kong dollar for an extended period.

The spokesperson also highlighted the supportive role of various measures by the Central Government and initiatives by the Special Administrative Region Government aimed at bolstering economic growth.

In other reports, official data indicated that Hong Kong's retail sales value experienced a significant downturn, plummeting by 9.7% year-over-year in December, following a 7.3% decline in November. Retail sales have consistently fallen since March. Over the full year of 2024, the total retail sales value was down by 7.3% compared to 2023, with the most significant drop seen in the sales of jewelry, watches, clocks, and luxury gifts, which fell by 14.5%.