Various sectors say Hong Kong's economic outlook to remain positive in new year

HONG KONG -- Data released by the Hong Kong Special Administrative Region (HKSAR) government on Feb. 3 showed that Hong Kong's GDP for the whole year of 2024 has increased by 2.5 percent year-on-year in real terms, meeting expectations. Various sectors in Hong Kong believed that in the new year, the city is expected to promote steady economic progress with new momentum.

Yim Kong, member of the HKSAR Legislative Council, said that in the face of the objective situation of external uncertainties, thanks to a series of favorable measures from the central government, Hong Kong's economy still achieved steady growth in 2024. This demonstrated the HKSAR government's proactive and pragmatic approach to boosting the economy, seeking development, and benefiting people's livelihoods with the concerted efforts of all sectors of society.

The industry insiders pointed out that the improvement in economic momentum in the fourth quarter was largely due to a series of favorable measures introduced by the central government. Among them, the implementation of the multiple-entry permit policy for Shenzhen residents traveling to Hong Kong injected new vitality into the Hong Kong economy, driving growth in related industries such as catering and retail.

In addition, the expansion of the individual visit scheme and the increase in the duty-free limit for mainland visitors to Hong Kong effectively promoted cross-boundary economic activities.

Statistics showed that during the first seven days of the Chinese New Year holiday in the Chinese mainland, nearly 1.25 million visitors came to Hong Kong. On the third day of the Chinese New Year, over 440 mainland tour groups visited Hong Kong, setting a record for the highest number of mainland tour groups visiting Hong Kong in a single day.

Looking ahead to 2025, industry insiders believe that Hong Kong has the strong advantage of being backed by the motherland. The country's proactive policies to boost the economy will help to enhance market confidence and benefit all sectors of Hong Kong's economy.

Chong Tai Leung, an associate professor from the Chinese University of Hong Kong's Department of Economics, said that the recent performance of the Hong Kong property and stock markets has been good. In January this year, both the volume and price of property transactions in Hong Kong increased.

Chong believed that with the global trend of declining interest rates in 2025, the Hong Kong financial market will further recover, and the economic growth momentum will be stronger than last year.

Ronald Wan, chief executive at Partners Capital International in Hong Kong, said that the strengthening of connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area brought new opportunities to Hong Kong during its economic transformation period.

Wan expected that in 2025, the synergy between Hong Kong and the mainland in finance, logistics, and technology will inject momentum into the Hong Kong economy.

Yim Kong said that Hong Kong can leverage on its platform as an international financial center, integrate the R&D strengths of higher education institutions, and join forces with enterprises to create an integrated industry-academia-research innovation and technology industrialization advantage, making Hong Kong an important part of the national and global innovation and technology industry chain.