Hong Kong economy

Hong Kong's economy experienced a growth of 3.3% in real terms during the second quarter of 2024, surpassing expectations and driven primarily by robust exports, which increased by 7.6%. Despite this positive growth, household spending declined by 1.6%, reflecting ongoing weakness in consumption patterns post-pandemic. The GDP growth exceeded the median forecast of 2.5% from economists, indicating resilience amidst geopolitical tensions and trade conflicts affecting the region. The government anticipates continued growth for the remainder of the year, although performance across different sectors may vary due to external uncertainties and changes in consumer behavior. Analysts caution that private consumption remains sluggish, impacted by a strong Hong Kong dollar and lower tourist spending, alongside challenges in the real estate market. The local government has set a full-year growth target of 2.5% to 3.5%, emphasizing the importance of external demand and investment to sustain economic momentum.