'Local businesses cautious about 2024 prospects'
Hong Kong’s businesses are “cautiously optimistic” about their prospects next year as the city's economic growth is predicted to slow down to 2.9 percent in the face of global uncertainties, according to the Hong Kong General Chamber of Commerce. In its annual business prospect survey, the city’s oldest business organisation found that while 37 percent of the 200 firms surveyed expect turnovers to see annual increases in 2024, 42 percent of the respondents anticipate their business turnovers next year to still be lower than pre-pandemic levels. The survey found that external uncertainties, including the global economic slowdown, weakened demand, as well as geopolitical tensions remain the major challenges for local businesses in the coming year, but the recent meeting between President Xi Jinping and his US counterpart Joe Biden has boosted business sentiment. Other roadblocks, larger firms said, include a talent shortage, while small and medium-enterprises said they are more concerned about inflation. The chamber also said it expects the city’s inflation to rise from the 2.2 percent this year to 3 percent next year, and the unemployment rate to slightly increase. “Only 31 percent of the firms said they plan to hire more staff over the coming 12 months, which is 3 percent less compared with the figures last year, while 11 percent of them indicated [they will] cut staff, up from the 7 percent last year,” the chamber’s economist Doris Fung, said. Fung pointed out that there was also more interest from local firms to invest in the Greater Bay Area, while interest in investing in Asean and the Middle East were mixed, with many companies taking a “wait and see” approach. Separately, Patrick Yeung, the chamber’s chief executive, gave a positive forecast for the city’s exports, saying the sluggish segment could rebound to growth next year at 3.8 percent, compared with the more than 8 percent decline this year.