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Hong Kong's GDP grew by 2.7% year-on-year in the first quarter, and tourism and consumption will drive recovery this year

HONG KONG (Reuters) – Hong Kong’s economy grew 2.7 percent in the first quarter from a year earlier, government data showed on Friday, thanks to a strong recovery in inbound tourism and domestic demand, which will remain growth drivers this year. .

This was the first quarter of growth after four consecutive contractions.

2023 The city’s economy shrank by 4.1% in the fourth quarter. On a seasonally adjusted basis, the economy grew 5.3 percent in the January-March period.

The government maintained 2023’s economic growth forecast between 3.5% and 5.5%, following a 3.5% drop in 2023.

Liang Daofu, a government economist, told a news conference: “If the economic recovery continues, the full-year economic growth is expected to be close to the upper limit of the range.”

Leung in An improving economic situation and outlook should boost domestic demand, although tight financial conditions will remain a constraint, it said in a separate statement.

He added that as the economy recovers, domestic cost pressures are likely to increase, while headline inflation is likely to pick up for the rest of the 2023 period, with underlying and headline consumer prices The forecasts for gains remained at 2.5% and 2.9%, respectively.

But DBS economist Samuel Tse said it should be noted that external headwinds stemmed from a slowdown in the US and Europe.

“Furthermore, the pace of China’s economic recovery is uneven,” Xie said.

HSBC Global Research on Friday raised its forecast for Hong Kong’s economic growth to 5.0% from 2023’s 3.8% due to It’s more upfront recovery.

HSBC warned in a research note: “Downward pressures remain on the economy. Weak global demand is likely to keep merchandise trade subdued, while high interest rates are likely to continue to dampen investment. “But we expect reopening and recovery will more than offset these pressures.”



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