HK’s economy sustains growth as tourism sector, equities rebound

The Hong Kong economy has seen five consecutive quarters of growth, primarily driven by a revival of inbound tourism alongside the continued recovery of the stock market, Financial Secretary Paul Chan Mo-po said on Sunday, stressing that the good performance demonstrates the sustained growth momentum of Hong Kong.

The surge in Hong Kong’s inbound tourism was a key factor driving the city’s first-quarter economic growth. With an increasing number of visitors to the city, services output is steadily rising, as highlighted by the financial chief in his weekly blog.

Around 670,000 visitors from the Chinese mainland visited the city between Wednesday and Saturday, the first four days of the May Day holidays, which ran from May 1 to 5, Secretary for Culture, Sports and Tourism Kevin Yeung Yun-hung told a radio show on Sunday.

Hong Kong’s economy has maintained a favorable growth trajectory this year, with an accelerating trend overall. This can be attributed to a substantial adjustment of the economic structure following the COVID-19 pandemic, Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Sunday.

More notably, the sustained recovery of the mainland’s economy has bolstered Hong Kong’s growth and reinstated market confidence in its economic performance, Cong said.

As another indication of the stable recovery of the city’s economy, Hong Kong stocks have climbed for nine straight trading sessions, with the Hang Seng Index surging by nearly 14 percent overall. The average daily trading volume exceeds HK$128 billion, signaling improved sentiment in the financial markets, Chan pointed out.

Hong Kong’s real GDP grew 2.7 percent year-on-year in the first quarter of 2024.