Chen Maobo: Hong Kong's GDP growth accelerates in the first quarter, marking the strongest quarterly growth in nearly 5 years.

The estimated figure for Hong Kong's first quarter Gross Domestic Product (GDP) will be released on Tuesday, May 5th. On May 3rd, Hong Kong Financial Secretary Paul Chan Mo-po stated in a blog post that with continued improvement in private consumption, along with exports and fixed investment performing well, the estimated GDP growth for the first quarter is expected to accelerate further from the revised 4.0% growth in the fourth quarter of last year, becoming the strongest quarterly growth in nearly five years. Paul Chan Mo-po mentioned that as one of the major re-export hubs in the region, exports have always been a key driver of Hong Kong's economy. The performance of Hong Kong's exports in the first quarter of this year has remained strong, increasing by 32% in value, marking the best quarterly performance in five years with continuous growth for 25 months. The rapid development of artificial intelligence globally has driven strong demand for related products and electronic products, which has to some extent mitigated the potential impact of geopolitical conflicts on local exports and the economy. He also noted that the asset market sentiment continues to improve, with brisk trading in Hong Kong stocks, and the residential property market is also on the rise. The unemployment rate for the first quarter of this year fell to 3.7%, while the latest growth in full-time employees' earnings recorded an increase of over 3%. The tourism industry in Hong Kong continues to thrive, with visitor arrivals in the first quarter growing further to 17% year-on-year, surpassing 14.3 million people, reaching a new high since the pandemic. For the whole year, there is a chance that the number of visitors to Hong Kong could exceed the original estimate of 53.8 million, with total expenditure related to inbound tourism expected to increase by over HK$24 billion, a 9.5% increase from last year. These factors will consolidate the positive momentum of the local retail and catering industries, and continue to support the overall economy. Paul Chan Mo-po pointed out that Hong Kong is accelerating the construction towards becoming a global high-value-added supply chain management center. From building data-driven, more efficient smart ports, to creating more innovative trade finance channels, as well as providing high-value-added professional services in fields such as law, accounting, ESG consulting, the goal is to continuously enrich the content of Hong Kong's international trade center and attract more domestic and foreign companies to establish international or regional headquarters and financial centers in Hong Kong, promoting further development of Hong Kong's headquarters economy. At the same time, Hong Kong is actively promoting the development strategy of "AI+" and "Finance+", accelerating the upgrade and transformation of various industries, strengthening the momentum and resilience of the Hong Kong economy to better cope with potential adverse factors. Paul Chan Mo-po continued to point out that while geopolitical changes bring certain challenges, Hong Kong as an international trade hub is also constantly seeing new growth opportunities and development space emerging. The government is closely monitoring the situation in the Middle East and the impact of rising international oil prices on related industries, small and medium-sized enterprises, and the overall economy. Taking into account the increase in operating expenses for industries with higher fuel costs such as transportation, the government has announced a series of short-term and targeted measures totaling approximately HK$2 billion to address the challenges, including diesel subsidies. In addition, to assist local small and medium-sized enterprises in coping with the current volatile market environment, the government has worked with the Hong Kong Monetary Authority and the banking industry to launch a new round of support measures, including allocating special funds for small and medium-sized enterprises and providing credit support to affected industries.