Chief Executive John Lee Ka-chiu said the city’s economy grew 2.7 percent in the first quarter of 2023, reversing contractions in the previous four quarters, including a 4.1 percent drop in the last stretch of 2022.
Although exports continued to decline in the first quarter, faster growth in the economy of mainland China, coupled with acceleration of Hong Kong’s aviation capacity, would provide further support, Lee said at a press briefing on Tuesday.
“As the mainland economy continues to grow at a fast pace and local aviation capacity speeds up its recovery, I believe Hong Kong’s economy in the second quarter will be better than that of the first,” he added.
“A series of large-scale promotional events have boosted tourism and consumption and improved the economy.”
The latest quarterly figure compared to a 4.1 percnt contraction in the last quarter, Lee said.
Economists from Barclays expected Q1 GDP to contract 0.9 percent, while Natixis and Hang Seng Bank forecast growth of 1.1 percent and 2.5 percent, respectively.
Hong Kong faces risks from high inflation and aggressive monetary tightening in advanced economies with higher borrowing costs and a pessimistic economic outlook hitting asset prices.
Its economy is expected to grow 3.5 percent to 5.5 percent this year after shrinking 3.5 percent in 2022, Financial Secretary Paul Chan said in a 2023/24 budget speech in February.
Hong Kong United Times丨香港聯合時報丨HKUT 