The Hong Kong Special Administrative Region (HKSAR)’s second-quarter GDP data, which is set be to unveiled on Monday, may indicate a slight slowdown compared with the first quarter, Financial Secretary Paul Chan Mo-po wrote on his blog on Sunday, while emphasizing that the overall economy remains on a path of improvement.
The statistics reveal that the Hong Kong economy is gradually recovering, driven by resurgent local consumption and a rebound in tourism as travel restrictions ease between Hong Kong and other global destinations, making them the primary drivers of this year’s economic recovery, Chan said.
The Hong Kong economy improved visibly in the first quarter, led by the strong recovery of inbound tourism and internal demand. On a seasonally adjusted quarter-to-quarter basis of comparison, real GDP surged by 5.3 percent.
In the second quarter, Chan noted, private consumption remained a key component of economic growth. Following a remarkable 24 percent year-on-year rise in retail sales in the first quarter, retail sales climbed by 17 percent in April and May. These figures have now surpassed 80 percent of the levels seen during the same period in 2018.
The food and beverage sector also showed promising signs, with significant year-on-year revenue growth expected in the second quarter.
However, the official noted that amid an enduringly weak external environment, merchandise exports remained under pressure. The value of Hong Kong’s commodity exports fell 13 percent year-on-year, following an 18-percent slump in the first quarter.
Local fixed investment, which briefly reversed its downtrend in the first three months, exhibited signs of slowing down in recent months.
Looking ahead, Chan remains steadfast in the HKSAR’s long-term development. He emphasized the city’s unique advantages under the framework of One Country, Two Systems and expressed gratitude for the unwavering support of the central government.
Chan reiterated that Hong Kong will continue to play a pivotal role as a “dual gateway,” connecting the Chinese mainland and international markets. This role is expected to aid mainland enterprises in expanding their global presence, bridging the two capital markets and attracting global capital, talent and businesses to the city.
As part of the effort to attract foreign investment, Chan said that HKSAR authorities have been actively engaging with over 150 key companies. Many of these companies are industry leaders with cutting-edge technologies. A significant number have already confirmed their decision to establish branches in Hong Kong, with a notable focus on sectors such as life sciences, health technology, artificial intelligence, big data and financial technology.
On the Chinese mainland, GDP expanded 6.3 percent year-on-year in the second quarter, taking first-half growth to 5.5 percent to 59.3 trillion yuan ($8.3 trillion), a hard-won growth given downward pressure globally and domestically and the absence of broad-based stimulus.
Fully aware of the challenges ahead, Chinese policymakers, ranging from the State Council and the top economic planner to the Commerce Ministry and the central bank, have been intensively launching supportive measures to boost consumption and rejuvenate growth momentum over the past week, moves that are seen as a pivot for bolstering the nation’s continuous economic recovery, which is critical for the world amid lingering headwinds.
(Global Times)
