Latest Developments

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

Latest situation
The Hong Kong economy weakened notably in 2022 after a visible expansion in 2021. Economic activities were first dampened by the fifth wave of the local epidemic and subsequently by the deteriorated external environment and tightened financial conditions. For 2022 as a whole, real GDP contracted by 3.5%. Looking ahead, the Hong Kong economy is expected to stage a visible rebound in 2023. While demand from the advanced economies will likely weaken further and weigh on Hong Kong’s exports of goods, the expected faster growth of the Mainland economy and the lifting of cross-boundary truck movement restrictions between Hong Kong and the Mainland should provide some support. With the removal of quarantine arrangements for inbound visitors and the resumption of normal travel between Hong Kong and the Mainland, visitor arrivals should stage a strong rebound and constitute a main driver of economic growth this year. Domestically, an improved economic outlook in tandem with the return of economic activities from the epidemic to normalcy should render a boost to private consumption, with the expected further improvement of the labour market providing additional support. Private investment will also benefit despite the tight financial conditions. This, coupled with the Government’s continued efforts in pursuing infrastructure development and increasing housing supply, should help support fixed asset investment. Having regard to the above factors, real GDP is forecast to grow by 3.5% to 5.5% in 2023. Underlying consumer price inflation will likely pick up further, though is forecast to remain largely moderate at 2.5% for the year.

External sector (PDF) (Excel)

Latest situation
Taking the first two months of 2023 together to remove the distortion caused by the different timing of Lunar New Year, the value of merchandise exports fell notably from a year earlier amid the weak external environment. Exports to all major markets fell by varying degrees.
Looking ahead, the expected growth moderation in the advanced economies will continue to weigh on Hong Kong’s export performance in the near term. Nonetheless, the accelerated recovery of the Mainland economy, coupled with the removal of cross-boundary truck movement restrictions between Hong Kong and the Mainland, should alleviate part of the pressure. The Government will monitor the situation closely.

Prices (PDF) (Excel)

Latest situation
Taking the first two months of 2023 together to neutralise the distortions caused by the different timing of the Lunar New Year, the underlying consumer price inflation rate remained moderate at 2.1%, though edging up from 2.0% in December 2022. Prices of energy-related items soared further year-on-year, and those of clothing and footwear as well as food continued to record visible increases. Price pressures on most other major components remained broadly in check.
Looking ahead, overall inflation could face some upward pressure, but should remain moderate in the near term. Domestic cost pressures may increase in tandem with the return of economic activities to normalcy. External price pressures should remain notable for some time, though likely see some moderation alongside easing inflation in major economies. The Government will continue to monitor the situation.

Labour market (PDF) (Excel)

Latest situation
The unemployment and underemployment situation continued to improve. The seasonally adjusted unemployment rate declined by 0.1 percentage point from November 2022 – January 2023 to 3.3% in December 2022 – February 2023. The underemployment rate also declined by 0.1 percentage point to 1.3%. The number of unemployed persons decreased by 2 700 to 115 700, and that of underemployed persons by 4 200 to 47 900.
Looking ahead, the labour market conditions should improve further in the near term alongside the continued return of economic activities to normalcy and the rebound in inbound tourism.

Retail and other economic indicators (PDF) (Excel)

Latest situation
The value of total retail sales rose further in January over a year earlier as consumer sentiment improved. The early arrival of the Lunar New Year this year could have also helped. Business of many types of retail outlet saw improvement, with some recording double-digit increases.
Looking ahead, the continued return of economic activities to normalcy and further rebound in the number of visitor arrivals will benefit the retail sector. Improved labour market conditions will also provide support.

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)