Inbound tourism push the HK economy to further recovery in 2Q23

In Q2, GDP grew by 1.5% YoY.

Hong Kong’s economy continued its recovery in 2Q23, expanding 1.5% YoY.

On a quarter-on-quarter comparison, however, gross domestic product (GDP) fell by 1.3%. 

According to the Census and Statistics Department (C&SD), “inbound tourism and private consumption" drove the year-on-year improvement in the economy.

In 2Q, private consumption expenditure grew by 8.2% YoY.

On the flip side, total goods exports plunged further in 2Q, falling 15.2% YoY due to weak external demand.

Overall, investment expenditure reverted to a mild decline of 0.9% amidst tightened financial conditions.

The government expects inbound tourism and private consumption to remain the major drivers of economic growth this year. 

“The improving economic situation and prospects should bode well for domestic demand, though tight financial conditions may impose constraints,”  Government Economist Adolph Leung said.

“Improved labour market conditions and the Government’s various measures that boost the momentum of the recovery will provide additional support to private consumption. Yet, the difficult global economic environment will continue to weigh on Hong Kong’s exports of goods,” Leung added.