Tourists Impact Hong Kong's Economic Growth Amid Liquidity Pressure

Friday, 16 August 2024, 08:58

Tourists are influencing Hong Kong's economic growth, with a 3.3% GDP increase this quarter. Ongoing liquidity pressure affects small and medium-sized businesses. The Census and Statistics Department projects moderate growth for 2024.
South China Morning Post
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.


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