Hong Kong’s economy in the first quarter of 2023 grew 2.7% from a year earlier, ending four consecutive quarters of declines, the Census & Statistics Department announced today.
According to the advance estimates on gross domestic product (GDP) for the first quarter, on a seasonally adjusted quarter-to-quarter basis, GDP increased by 5.3% in real terms in the first quarter of this year compared with the preceding quarter.
Private consumption expenditure rose 12.5% in the first quarter year-on-year, much faster than the 1.7% increase in the fourth quarter of 2022. Government consumption expenditure grew by 0.5% year-on-year, after the 9.1% increase in the preceding quarter.
Gross domestic fixed capital formation rose 5.8% in the first quarter of 2023 over a year earlier, as against the 8.9% decrease in the fourth quarter of 2022.
Over the same period, total goods exports recorded a decline of 18.7% after the decrease of 24.9% in the fourth quarter of 2022. Goods Imports fell by 14.5% year-on-year, compared with the 22.9% decline in the fourth quarter of 2022.
Exports of services rose significantly by 16.9% in the first quarter of 2023 over a year earlier, compared with the 0.6% increase in the preceding quarter. Imports of services increased 20.6%, after the 1.2% increase in the fourth quarter of 2022.
The Government said that Hong Kong’s economy improved visibly in the first quarter this year, led by the strong recovery of inbound tourism and domestic demand. Private consumption expenditure showed notable growth as sentiment improved sharply along with the removal of anti-epidemic measures in both Hong Kong and the Mainland.
Looking ahead, inbound tourism and domestic demand will remain the major drivers of economic growth this year. Visitor arrivals should recover further as transportation and handling capacity continue to catch up.
Exports of goods will continue to face significant challenges, the Government said, adding that slower growth in the advanced economies will continue to weigh on external demand, though the faster recovery of the Mainland economy should provide some relief.
The revised GDP figures for the first quarter of 2023 and the whole year’s forecast will be released on May 12.