2024 GDP growth projected to reach 2.5-3.5 percent
Financial Secretary Paul Chan has projected GDP growth of 2.5 percent to 3.5 percent for Hong Kong this year. The economy grew by 3.2 percent in 2023. Delivering his budget speech, Chan said the external environment remains complicated, with geopolitical tensions continuing to affect international trade and capital flows, but he also cited the prospects of an interest rate cut by the US Federal Reserve and steady economic growth on the mainland. "The external environment will continue to put pressure on Hong Kong's exports of goods. But global monetary conditions may ease progressively over the course of the year, which would bode well for export performance," he said. Chan also said he expects an increase in visitor arrivals this year. The economy is projected to grow by an average of 3.2 percent each year from 2025 to 2028. As for inflation, the underlying inflation rate is expected to reach 1.7 percent and headline inflation to reach 2.4 percent this year. The underlying inflation rate is forecast to average 2.5 percent annually from 2025 to 2028.