Hong Kong’s economy continued to expand at a moderated pace in the third quarter of 2024, with real gross domestic product (GDP) rising by 1.8% year-on-year, the Government reported today.

Releasing the Third Quarter Economic Report 2024, it said that on a seasonally adjusted quarter-to-quarter comparison, real GDP declined by 1.1% in the third quarter.

Total exports of goods grew by a moderated 4% year-on-year amid softening economic growth in some major markets in the third quarter.

Exports of financial services, business and other services, and transport services grew further, while exports of travel services continued to decline alongside the change in consumption patterns of visitors and the strength of the Hong Kong dollar.

Domestically, the labour market remained tight in the third quarter, with the seasonally adjusted unemployment rate staying low at 3%. Employment earnings continued to record solid growth.

Private consumption expenditure continued to decline by 1.3% amid the change in consumption patterns of residents, while overall investment expenditure rose further by 3.7%.

The residential property market was quiet for most of the third quarter, but market sentiment improved and developers stepped up launches of new projects after the US rate cut in September.

Consumer price inflation remained modest in the third quarter. The underlying Composite Consumer Price Index rose by 1.1% year on year.

While the external environment has turned more challenging recently, the Hong Kong economy is expected to maintain its growth momentum for the remainder of the year, the Government said.

Despite the increased global economic uncertainties and escalation of trade conflicts that would affect Hong Kong’s goods exports, the expected further monetary easing by major central banks plus the Mainland's recent measures to stimulate the economy would support sentiment and activities in the domestic market, it added.

Taking into account the latest developments of the global and local situation, the real GDP growth forecast for 2024 as a whole is revised to 2.5%, from 2.5%-3.5% in the August round of review.

On the inflation outlook, the Government said that overall inflation should stay modest in the near term, with the forecast rates of underlying and headline consumer price inflation for the year revised down to 1.1% and 1.7% respectively.