Hong Kong’s economy grew 2.7% in the first quarter of 2024 over the same period a year earlier, down from a 4.3% increase in the fourth quarter of 2023, the Census & Statistics Department announced today.
  

According to advance estimates, gross domestic product (GDP) increased by 2.3% in real terms in the first quarter of this year on a seasonally adjusted quarter-to-quarter basis.
 

Private consumption expenditure rose 1% in the first quarter year-on-year, following an increase of 3.5% in the fourth quarter last year. Government consumption expenditure fell 3% year-on-year, as against a 5.2% decrease in the fourth quarter of 2023.
 

Gross domestic fixed capital formation increased by 0.3% in the first quarter of this year over a year earlier, moderating from an increase of 17.5% in the preceding quarter.
 

Over the same period, total goods exports recorded an increase of 6.7% over a year earlier, compared with a 2.8% increase in the fourth quarter of the preceding year. Goods imports grew 3.2%, compared with a 3.8% increase in the preceding quarter.
 

Exports of services rose 8.1% in the first quarter over a year earlier, as against an increase of 21.2% in the fourth quarter of 2023. Imports of services increased by 17.6%, following an increase of 26.7% in the preceding quarter.
 

The Government said Hong Kong’s economy recorded moderate growth in the first quarter and highlighted that exports of services continued to show notable growth thanks to a further increase in visitor arrivals.
 

Looking ahead, it said services exports should be supported by a further revival of inbound tourism, along with a continued recovery in handling capacity and the Government’s efforts to promote a mega event economy.
 

Geopolitical tensions and tight financial conditions will continue to affect exports of goods, but slight improvement may be seen here as external demand has held up relatively well so far, the Government added.
 

Domestically, it said, rising household income and the Government’s initiatives to boost sentiment should help private consumption, but the changing consumption patterns of residents may pose challenges.
 

Continued economic growth should lend support to fixed asset investment, it added. However, a longer period of tight financial conditions may have some dampening effects on economic confidence and activities.
 

The revised GDP figures for the first quarter of 2024 and a revised forecast for the whole year will be released on May 17.