The Hong Kong economy saw an improvement

Hong Kong’s economy experienced a considerable upturn in early 2023 thanks to a great resurgence in tourism and heightened local activity.

Officials in Asia’s main financial center suggested the second quarter could be even better, given China’s continued economic growth.

Hong Kong’s GDP grew by 2.72 percent in 2023, ending four consecutive quarters of contraction. GDP decreased by 4.12 percent in the previous quarter. In the seasonally adjusted quarter, the economy grew by 5.32 percent in the first quarter.

Although exports weakened in the first quarter, the faster expansion of China’s mainland economy will provide further support.

Economic increase in the second quarter will be higher than in the first quarter. The economy will be more positive this year than last year.

Inbound tourism and domestic trade will remain the main drivers of economic growth in 2023. The number of visitors should increase further as the transport capacity continues to rise.

An improved economic situation and outlook should boost domestic demand, although tight financial conditions will remain unchanged.

Hong Kong’s tourism

Hong Kong’s economic development is inseparable from mainland tourists.

The Cathay Pacific group, comprising its two passenger airlines, Cathay Pacific and HK Express, has flown to more than 70 destinations and achieved a 50 percent passenger flight volume compared to pre-pandemic levels.

The company will add additional flights.

From now, the number of return flights will gradually increase to around 160 per week.

On Wednesday, Qunar.com, a travel platform, reported to the Global Times that bookings of international flights during the upcoming May Day holiday have increased to 45% of pre-pandemic levels. Hong Kong and Seoul were the top three destinations for travelers to mainland China.