Latest Developments

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

Latest situation
Led by inbound tourism and private consumption, the Hong Kong economy continued to recover in the second quarter of 2023, though the momentum softened on the back of the strong rebound in the preceding quarter. Real GDP grew by 1.5% year-on-year, having increased by 2.9% in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP fell by 1.3%. Looking ahead, inbound tourism and private consumption will remain the major drivers of economic growth for the rest of the year. As transportation and handling capacity continue to recover, visitor arrivals should increase further. The improving economic situation and prospects should bode well for domestic demand, though tight financial conditions may impose constraints. Improved labour market conditions and the Government’s various measures that boost the momentum of the recovery will provide additional support to private consumption. Yet, the difficult global economic environment will continue to weigh on Hong Kong’s exports of goods. Taking into account the actual outturn in the first half of 2023 and the factors mentioned above, the real GDP growth forecast for 2023 as a whole is revised to 4.0%-5.0%. The forecast rates of underlying and headline consumer price inflation for 2023 are revised down to 2.0% and 2.4% respectively.

External sector (PDF) (Excel)

Latest situation
The value of merchandise exports continued to fall in July 2023 from a year earlier. Exports to the Mainland, the United States and the European Union all shrank. Exports to most other major Asian markets recorded decreases of varying degree.
Looking ahead, the difficult external environment will continue to weigh on Hong Kong’s exports performance in the near term. The Government will monitor the situation closely.

Prices (PDF) (Excel)

Latest situation
The underlying consumer price inflation remained moderate in August. Prices of electricity continued to rise notably over a year earlier, but the rate of increase eased further.  Prices of clothing and footwear as well as meals out and takeaway food continued to register visible increases. Price pressures on other major components remained broadly in check.
Looking ahead, overall inflation should stay moderate in the near term. External price pressures are likely to abate further. While domestic business cost might face some upward pressures alongside the further revival of economic activities, it should remain largely moderate in the near term. The Government will continue to monitor the situation.

Labour market (PDF) (Excel)

Latest situation
The seasonally adjusted unemployment rate stayed low at 2.8% in June – August 2023, same as the level in May – July 2023. The underemployment rate edged down by 0.1 percentage point to 1.0%. Both the labour force and total employment increased further, by 6 900 and 6 500 to 3 826 600 and 3 714 500 respectively. The number of unemployed persons stayed low at 112 100.
Looking ahead, the ongoing recovery of inbound tourism and local consumption would continue to support the labour market in the coming months.

Retail and other economic indicators (PDF) (Excel)

Latest situation
The value of total retail sales continued to increase visibly in July over a year earlier alongside the increase in visitor arrivals and positive consumption sentiment.
The revival in inbound tourism should continue to benefit the retail sector in the coming months. Improved labour market conditions and the Government’s various measures to support consumption should also help.

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)