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Hong Kong economy expected to grow up to 6.5 per cent this year, upgraded forecast shows
- Officials previously predicted that full-year GDP would rise by a maximum of 5.5 per cent
- Analysts wave off suggestions that Hong Kong’s population decline revealed this week will materially impact economic growth
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Hong Kong’s economy will expand by between 5.5 per cent and 6.5 per cent this year, according to an upgraded government forecast, while analysts have rejected suggestions that growth is under threat from a recent drop in the population.
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Official figures released on Friday showed that the city’s gross domestic product grew 7.6 per cent year on year in the second quarter, signalling a sustained economic rebound brought on by the easing of the local coronavirus situation.
During the first half of 2021, real GDP grew 7.8 per cent from the same period last year, the Census and Statistics Department data also revealed.
Government economist Andrew Au Sik-hung predicted that the global economic recovery would continue to support Hong Kong exports in the short term.
He added that domestic consumption and business sentiment would further improve over the rest of the year – provided residents actively participated in the Covid-19 vaccination drive and the pandemic was kept under control.
“The consumption voucher scheme has stimulated the market, which has become more vibrant,” Au said, referring to the government’s HK$5,000 coupons initiative to boost local spending.
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“I believe this will help support the ongoing recovery of consumption-related industries. It will also help the recovery of the job market and reduce the unemployment rate.”
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