Tourists Impact Hong Kong's Economic Growth Amid Liquidity Pressure
Economic Growth Driven by Tourists
The Hong Kong government maintains its 2024 economic growth forecast, reporting a 3.3% increase in gross domestic product (GDP) for the second quarter. According to the Census and Statistics Department, this aligns with previous estimates.
Liquidity Pressure Challenges
Though growth is anticipated, liquidity pressure affects small and medium-sized businesses. Financial Secretary Paul Chan Mo-po emphasized the need for banks to support struggling homeowners.
- Second quarter GDP forecast: 2.5% to 3.5%
- July retail sales decline: 9.7% year-on-year
- Visitor numbers surge: 25 million
Future Economic Outlook
Beijing's policy changes could enhance visitor spending, yet tourism consumption patterns may challenge the market. As Hong Kong integrates more with mainland China, growth is projected at an average 3.2% from 2025 to 2028.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.