Latest Developments

Gross Domestic Product and its major components (PDF) (Excel)

Latest situation
The Hong Kong economy recorded moderate growth in the first quarter of 2024. Exports of services remained as an important driver of growth, while total exports of goods improved further. Private consumption and overall investment expenditures continued to expand. Real GDP grew by 2.7% year-on-year, having increased by 4.3% in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP increased by 2.3%. Looking ahead, the Hong Kong economy should record further growth in the rest of the year. Exports of services should be supported by further revival of inbound tourism alongside the continued recovery of handling capacity and the Government’s efforts to promote a mega event economy. Exports of goods should improve further if external demand holds up, though geopolitical tensions will bring uncertainties. Domestically, rising employment earnings and the Government’s initiatives to boost sentiment should help private consumption, but residents’ changing consumption pattern may pose challenges. Continued economic growth should lend support to fixed asset investment. However, a longer period of tight financial conditions may affect local economic confidence and activities. Taking into account the actual outturn in the first quarter and the latest developments of the global and local situation, the real GDP growth forecast for 2024 as a whole is maintained at 2.5%-3.5%. The forecast rates of underlying and headline consumer price inflation for 2024 are maintained at 1.7% and 2.4% respectively.

External sector (PDF) (Excel)

Latest situation
The value of merchandise exports posted further double-digit growth in May 2024 over a year earlier. Exports to the Mainland and the United States continued to rise notably, while those to the European Union turned to an increase. Those to many other major Asian markets also saw growth.
Looking ahead, Hong Kong’s export performance should stay positive if external demand holds up well, though geopolitical tensions will continue to bring uncertainties. The Government will monitor the situation closely.

Prices (PDF) (Excel)

Latest situation
The underlying consumer price inflation remained modest in May. Prices of meals out and takeaway food continued to increase at a relatively fast pace over a year earlier, while those of basic food were virtually unchanged. Prices of energy-related items decreased markedly further. Price pressures on other major components remained broadly in check.
Looking ahead, overall inflation should stay contained in the near term. Domestic cost pressures may increase as the Hong Kong economy continues to grow. External price pressures should continue to stay on a broad moderating trend, though geopolitical tensions may bring uncertainties. The Government will continue to monitor the situation.

Labour market (PDF) (Excel)

Latest situation
The seasonally adjusted unemployment rate stayed low at 3.0% in March – May 2024, same as February – April 2024. The underemployment rate was also low at 1.2%, though 0.1 percentage point higher than the preceding three-month period. The labour force and total employment increased further, by 5 300 and 2 800 to 3 813 100 and 3 696 900 respectively. The number of unemployed persons increased slightly by 2 500 to 116 200, but it was still a low level.
Looking ahead, the labour market should stay tight in the near term alongside the continued economic growth.

Retail and other economic indicators (PDF) (Excel)

Latest situation
The value of total retail sales continued to decline notably in May from a year earlier, mainly affected by changes in the consumption patterns of visitors and residents, as well as the strength of the Hong Kong dollar. A relatively high base for comparison in the same period last year was also relevant.
Looking ahead, the retail sector may still face some challenges in the near term. However, the Central Government’s recently announced measures benefitting Hong Kong, including the further enhanced Individual Visit Scheme and the increase of duty-free allowance for luggage articles for Mainland resident visitors, should help stimulate retail businesses. The SAR Government’s strenuous efforts to promote a mega event economy and boost market sentiment should also provide support. Rising employment earnings and the recent stabilisation of the asset markets also bode well for the sector.
The value of online retail sales increased by over 20% year-on-year in May, and its share in total retail sales value has continued to increase in recent months. This reflects that the retail sector can seize new opportunities by adapting to changing consumption patterns through changing sales mode and venturing into new businesses. The SAR Government will continue to support small and medium-sized enterprises in embracing digital transformation, including assisting the retail sector in adopting ready-to-use digital technology solutions through the Digital Transformation Support Pilot Programme.
The current overall economic situation of Hong Kong is positive. Overall investment expenditure continued to expand in the first quarter, and the values of merchandise exports posted further double-digit growth in April and May over a year earlier. The SAR Government has made good progress in actively attracting enterprises, capital and talent from around the world to Hong Kong. It will also continue to strengthen traditional sectors and accelerate the development of emerging sectors with potential. This will make Hong Kong’s industrial development more enriched and diverse, adding new growth impetus and enhancing the overall competitiveness of the economy.

Other Economic Indicators

Hong Kong population (PDF) (Excel)

Regional headquarters/offices and external investments (PDF) (Excel)

Asset market, exchange rates and interest rates (PDF) (Excel)