Hong Kong Economy Grows by 3.3% In the Second Quarter

2024 is looking good as the Hong Kong economy grows by 3.3% in the second quarter of this year (compared to the same period last year). Its gross domestic product (GDP) grew 0.4% in real terms on a seasonally adjusted quarter-to-quarter basis in the second quarter.

Hong Kong’s gross domestic fixed capital formation recorded a 6% growth in the second quarter year-on-year. Total goods exports grew 7.6%, and good imports rose 3.4%. Service exports grew 1.3%, while service imports grew 12.4%. All of this happened during the second quarter year-on-year.

Robust goods exports contributed to moderate growth in the second quarter. The economy is anticipated to continue to grow for the rest of the year.

Private Expenditure On the Decline

As the Hong Kong economy grew, private consumption expenditure declined by 1.6% year-on-year during the second quarter. On the other hand, government consumption expenditure grew by 2% compared to its 2.2% decrease in the previous quarter.

The exports of goods look like they will remain strong as the Hong Kong economy grows if external demand persists. However, there is uncertainty around US interest rates because of geopolitical tensions. This could have a potential impact on economic activity.