The Zhitong Finance App learned that on October 31, the Hong Kong Government Statistics Department released a preliminary estimate of GDP for the third quarter of 2024. According to preliminary estimates, the gross domestic product for the third quarter of 2024 increased by 1.8% in real terms compared to the same period of the previous year, while the increase in the second quarter was 3.2%. For the first three quarters of 2024 combined, the gross domestic product increased by 2.6% in real terms compared to the same period last year.

According to the analysis of the major components of GDP, private consumption expenditure actually declined by 1.4% in the third quarter of 2024 compared with the same period of the previous year, while the decline in the second quarter was 1.6%.

Government consumption expenditure, as defined in national accounts, recorded a real increase of 2.1% in the third quarter of 2024 compared with the same period of the previous year, while the increase in the second quarter was 2.2%.

Following a 4.1% increase in the second quarter of 2024, the gross domestic fixed capital formation actually increased by 3.7% in the third quarter compared to the same period last year.

In the same period, according to the definition of national economic accounts, total exports of goods recorded a real increase of 3.9% compared with the same period last year, and the increase was slower than 7.5% in the second quarter. According to the definition of national accounts, imports of goods increased by 2.6% in real terms in the third quarter of 2024, while the increase in the second quarter was 3.4%.

Service exports increased by 2.4% in real terms in the third quarter of 2024 compared to the same period last year, while the increase in the second quarter was 1.1%. Service imports rose 8.2% in real terms in the third quarter after rising 12.3% in the second quarter of 2024.

The seasonally adjusted GDP fell by 1.1% in real terms in the third quarter of 2024 compared to the second quarter.

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A Hong Kong government spokesman said that the Hong Kong economy continued to expand year-on-year in the third quarter of 2024, although at a slower pace. According to preliminary estimates, real GDP increased 1.8% year over year in the third quarter. For the first three quarters, real GDP increased 2.6% year over year. On a seasonally adjusted quarterly basis, real GDP declined by 1.1% in the third quarter.

Analyzed by major expenditure components, the overall growth in exports of goods has slowed year-on-year as economic growth in some major markets has slowed. Service exports continued to record moderate increases, supported by increased cross-border economic activity. Overall investment spending increased further along with overall economic growth. However, private consumption expenditure continues to fall as citizens' consumption patterns change.

Looking ahead, the economy should continue to grow for the rest of the year. Although global economic uncertainty and trade frictions may affect Hong Kong's export performance, the relaxation of monetary policies by major central banks and the improvement of the mainland's economic outlook as the country recently introduced a package of boosting measures will help support the atmosphere and activity in the local market. Specifically, the gradual relaxation of financial conditions should benefit fixed asset investment. The Hong Kong dollar exchange rate may weaken along with the US dollar. Coupled with the central government's various measures to benefit Hong Kong, the HKSAR Government's various measures to boost the market atmosphere, and the increase in employment income, all help drive the consumption of citizens and visitors in the local market, although changes in their consumption patterns will continue to pose challenges.

The “Policy Address” has proposed a series of strong measures to develop the economy, while consolidating and upgrading Hong Kong's traditional dominant industries, while actively exploring new growth points. On the financial side, the “Policy Address” proposed making Hong Kong an international gold trading market and further consolidating Hong Kong's position as an international financial center. In terms of shipping, the “Policy Address” proposes to establish an ecosystem for commodity trading, drive shipping services, and help develop related financial and professional services such as futures hedging. As for trade, the government will focus on building a high value-added supply chain service center to attract domestic and foreign companies to establish headquarters or branch operations in Hong Kong. The Policy Address also lowered the import tax on spirits to encourage the development of the spirits trade and related high value-added services. Furthermore, in terms of developing new quality productivity, the “Policy Address” proposed measures such as establishing a 10 billion yuan innovation and technology industry guidance fund and developing a low-altitude economy. The Government will fully implement the measures proposed in the Policy Address to inject new momentum into Hong Kong's economic development.