Hong Kong's GDP in the fourth quarter of 2024 increased by 2.4% year-on-year

Zhitong
2025.02.03 08:57
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The Hong Kong Census and Statistics Department released the GDP estimates for the fourth quarter and the whole year of 2024, with a year-on-year increase of 2.4% in the fourth quarter, compared to 1.9% in the third quarter. The annual GDP increased by 2.5% compared to 2023. Private consumption decreased by 0.2% year-on-year in the fourth quarter, down 0.6% for the whole year. Government consumption rose by 1.9% in the fourth quarter and increased by 0.9% for the whole year. Fixed capital formation fell by 0.9% in the fourth quarter but rose by 2.4% for the whole year. Goods exports and imports increased by 1.2% and 0.1% respectively in the fourth quarter. Service output and input rose by 5.6% and 8.7% respectively in the fourth quarter

According to the Hong Kong government's Census and Statistics Department, the preliminary estimates for local Gross Domestic Product (GDP) for the fourth quarter and the entire year of 2024 were released today. Based on the preliminary estimates, Hong Kong's local GDP in the fourth quarter of 2024 increased by 2.4% compared to the same period last year, while the growth rate for the third quarter was 1.9%. For the entire year of 2024, the local GDP increased by 2.5% compared to 2023.

Analyzing the main components of local GDP, private consumption expenditure decreased by 0.2% in the fourth quarter of 2024 compared to the same period last year, narrowing from a decline of 1.3% in the third quarter. For the entire year of 2024, private consumption expenditure decreased by 0.6% compared to 2023.

Government consumption expenditure, calculated according to the national economic accounting definition, recorded a real increase of 1.9% in the fourth quarter compared to the same period last year, while the growth rate for the third quarter was 1.7%. For the entire year of 2024, government consumption expenditure increased by 0.9% compared to 2023.

The total local fixed capital formation decreased by 0.9% in the fourth quarter of 2024 compared to the same period last year, while it increased by 5.7% in the third quarter. For the entire year of 2024, the total local fixed capital formation increased by 2.4% compared to 2023.

During the same period, the total value of goods exports, calculated according to the national economic accounting definition, recorded a real increase of 1.2% compared to the same period last year, slowing from a growth rate of 4.0% in the third quarter. The total value of goods imports in the fourth quarter of 2024 increased by 0.1% in real terms, while the growth rate for the third quarter was 2.8%. For the entire year of 2024, the total value of goods exports and imports recorded real increases of 4.7% and 2.3%, respectively, compared to 2023.

After a real increase of 2.9% in the third quarter of 2024, service output further increased by 5.6% in the fourth quarter compared to the same period last year. Service input increased by 8.7% in real terms in the fourth quarter of 2024, while the growth rate for the third quarter was 8.9%. For the entire year of 2024, service output and service input recorded real increases of 4.8% and 11.8%, respectively, compared to 2023.

The seasonally adjusted local GDP, compared on a quarter-to-quarter basis, increased by 0.8% in the fourth quarter of 2024 compared to the third quarter.

Comment

A spokesperson for the Hong Kong government stated that the year-on-year growth pace of Hong Kong's economy accelerated in the fourth quarter of 2024. According to the preliminary estimates, the real local GDP grew by 2.4% year-on-year in the fourth quarter. Seasonally adjusted, the real local GDP turned to a growth of 0.8% compared to the previous quarter.

Following a growth of 3.2% in 2023, the real local GDP further moderately increased by 2.5% for the entire year of 2024. Overall goods exports resumed growth due to improved external demand. The number of visitors to Hong Kong continued to rise, and other cross-border economic activities improved, driving service output to continue increasing. As the overall economy continues to expand, overall investment expenditure further increased. However, due to changes in consumer spending patterns, private consumption expenditure recorded a slight decline.

Looking ahead, although uncertainties in the external environment have increased, Hong Kong's economy is expected to achieve further growth in 2025. The trade protection policies implemented by the United States may disrupt global trade flows and negatively impact Hong Kong's goods exports Related policies may also lead to a slowdown in the pace of interest rate cuts in the United States, allowing the Hong Kong dollar exchange rate to remain high for a longer period. However, the country's implementation of proactive policies to boost the mainland economy will help enhance market confidence and benefit various economic sectors in Hong Kong. Several measures by the central government to benefit Hong Kong, along with a series of initiatives by the SAR government to promote economic growth, will also provide support for different economic activities

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