(To watch the full press conference with sign language interpretation, click here.)

Supported by inbound tourism and private consumption, Hong Kong’s economy continued to revive in the third quarter of 2023, with real gross domestic product (GDP) growing by 4.1% from a year earlier.

Presenting the latest economic figures and the Third Quarter Economic Report 2023 at a press conference today, Government Economist Adolph Leung announced that the real GDP growth forecast for 2023 as a whole is revised down to 3.2%.

Total exports of goods declined 8.6% year-on-year in real terms in the third quarter amid weak external demand for goods. Exports to the Mainland, the US and the European Union fell further.

However, exports of services expanded notably by 23.9%. Exports of travel services leapt almost nine-fold, thanks to the continued revival of visitor arrivals. Exports of transport services also rose in tandem. Exports of business and other services grew modestly, while exports of financial services fell.

Domestically, alongside rising household income and the Government’s various support initiatives, private consumption expenditure rose further by 6.3% year-on-year in real terms in the quarter.

The residential property market turned more sluggish in the third quarter. Market sentiment stayed cautious amid rising local interest rates and the challenging external environment. The number of transactions fell by 25% from the preceding quarter to 9,174. Overall flat prices dipped 4% between June and September.

Consumer price inflation stayed moderate in overall terms in the third quarter, with the underlying Composite Consumer Price Index rising by 1.6% year-on-year in the third quarter. Prices of meals out and takeaway food recorded a visible but softened increase over a year earlier, while prices of basic food continued to show a modest increase. Private housing rentals continued to decline.

Mr Leung said: “Inbound tourism and private consumption will continue to underpin economic growth for the rest of the year. More visitors could be received as handling capacity recovers further.

“As regards private consumption, continued improvement in household income and the Government’s various support initiatives including Night Vibes Hong Kong should provide support. Yet, the difficult external environment would continue to weigh on exports of goods and investment and consumption sentiment.”

He added that the Government revised down its economic growth forecast for 2023 as a whole to 3.2%, from 4% to 5% in the August round of review.

Meanwhile, the forecast rates of underlying and headline consumer price inflation for 2023 are revised down to 1.8% and 2.2% respectively, from 2% and 2.4%.