Hong Kong’s economic growth slowed to 2.5 percent in 2024, the city’s government said Monday, adding that the outlook for the year ahead was dimmed by “heightened uncertainties”.
The Chinese financial hub saw a post-pandemic rebound in 2023 after the city reopened to international business and travel, but lost some momentum as China’s economic slowdown deepened.
Gross domestic product increased by 2.5 percent in real terms in 2024, compared to 3.2 percent growth the year before, according to preliminary figures released by the government.
“Private consumption expenditure recorded a slight decline, affected by the change in residents’ consumption patterns,” a government spokesperson said.
Increasing numbers of Hong Kong residents are choosing to spend in neighbouring Shenzhen since travel resumed — preferring its cheaper groceries, entertainment and even healthcare services.
Private consumption dropped by 0.6 percent year-on-year, while other major GDP components all recorded growth.
The government said it expected Hong Kong’s economy to grow in 2025 “despite heightened uncertainties in the external environment”.
US President Donald Trump on Sunday announced 10 percent tariffs against China, sparking fears of trade wars that could pummel the global economy.
“Trade protectionist policies implemented by the United States may disrupt global trade flows and adversely affect Hong Kong’s goods exports,” the Hong Kong government spokesperson warned.
“They may also lead to a slower pace of interest rate cuts in the US and keep the Hong Kong dollar strong for longer.”
But Hong Kong’s economy will benefit from Beijing’s efforts to stimulate growth and bolster market confidence, he said.
