Hong Kong Q1 GDP expands 2.7% y/y, tourism, events to support growth
Q1 GDP grows 2.7% y/y versus 4.3% in Q4 2023
Q1 seasonally adjusted GDP up 2.3% q/q vs Q4's 0.2% growth
Government maintains full year 2.5%-3.5% growth forecast
Adds details, comments from government spokesman
HONG KONG, May 17 (Reuters) -Hong Kong's economy expanded by2.7% in the first quarter from a year earlier, the government said on Friday, adding that inbound tourism and major business and entertainment events would support growth for the rest of the year.
The economy expanded by 4.3% in the fourth quarter of 2023.
"Looking ahead, the Hong Kong economy should record further growth in the rest of the year,"Adolph Leung, a government economist, said in a statement, adding private consumption and government support initiatives should bolster growth.
However, Leung also said the changing pattern of residents' consumption may pose challenges while a longer period of "tight financial conditions" may affect local economic confidence and activity.
On a seasonally adjusted quarterly basis, the economy grew 2.3% in the January-March period. That compared with growth of 0.2% in the October-December quarter.
The government has maintained its full-year economic growth forecast for 2024 of between 2.5% and 3.5%.
Hong Kong, a major financial hub, is struggling to bounce back after a three-year COVID-19 lockdown. The recovery has been hampered by a surge in Hong Kong residents travelling to the mainland for shopping and entertainment. They say prices there are generally lower and service is better.
Eight more Chinese cities have joined a scheme allowing their residents to travel to Hong Kong on their own, rather than as part of a tour group, as part of efforts to boost Hong Kong's economy. Thetotal number of cities in the scheme is now 59.
Reporting by Donny Kwok; Editing by Christina Fincher and Gareth Jones
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