GDP up 4.1% in Q3: advanced estimates

Tourism and private consumption will underpin growth; exports remain weak.

Hong Kong’s gross domestic product (GDP) rose by 4.1% in the third quarter of 2023,  thanks to improved domestic demand and services trade.

This is a faster rise than the 1.5%, according to advanced estimates from the Census & Statistic Department (CenStat).

On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.1% in real terms in Q3 compared with Q2.
 
Private consumption rose by 6.5% in real terms during the quarter, extending the 7.7% expenditure increase in Q2. 
 
Government consumption expenditure–measured in national accounts terms–recorded a decline of 4.5% in real terms in Q3 compared to a year ago. This is a narrower decline than the 9.8% decrease recorded in Q2. 

Total exports of goods also declined at a narrower pace in Q3, shrinking of 8.6% in real terms during the quarter. In comparison, total export of goods decreased by 15.1% in Q2. 

Imports, meanwhile, fell by 6% in real terms in the third quarter, compared with the 15.8% decline in the second quarter.
 
Exports of services rose 24% during the same period, ramping up from a 22.8% increase in Q2. Imports of services rose by 28.5% in Q3, after a 25.4% in Q2.
  
Looking ahead, a government spokesman expects more tourists to enter Hong Kong. This, along with private consumption, will underpin the city’s economic growth for 2023.

“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,” the spokesperson said, as quoted by the Census & Statistics Department in their press release.

“Yet, the difficult external environment amidst increasing geopolitical tensions and tight financial conditions would continue to weigh on exports of goods and investment and consumption sentiment,” the spokesperson added.