Hong Kong’s economy is expected to show continued growth in the second quarter of this year, Financial Secretary Paul Chan Mo-po said on Sunday, citing increased exports and overall investment as key drivers.

The finance chief made the remarks in his Sunday blog ahead of the release of the city’s gross domestic product estimates for the period next week.

The special administrative region’s exports, a major economic driver, have remained robust with double-digit year-on-year growth for three consecutive months, showing a 12.5-percent increase in the second quarter of 2024.

Chan attributed the increase to improved external demand and the nation’s robust growth in exports. “Despite high interest rates dampening market sentiment, overall investment spending has maintained growth, with the momentum likely to gather pace in the future."  

He struck an upbeat tone about the SAR’s economic prospects, citing potential interest-rate cuts later this year and the country’s stable economic progress as supportive factors.

“Looking ahead, although geopolitical challenges persist, interest rates are expected to start declining later in the second half of the year, which is likely to benefit investment and asset market performance. Meanwhile, the national economy maintains overall stability with progress, and the long-term positive fundamentals remain unchanged, providing the strongest support for Hong Kong’s economy,” Chan noted.

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He said many companies are advancing plans to list in Hong Kong, and the thriving innovation and technology sector is attracting high-end professionals from the Chinese mainland and overseas to pursue their careers in the city.

As more enterprises and professionals come to Hong Kong, Chan said the "overall development atmosphere in Hong Kong is positive and will become more vibrant, which is expected to play a supportive role in various economic sectors”.  

However, changes in consumption patterns of tourists and residents, coupled with a relatively strong Hong Kong dollar, have led to a weak performance in local private consumption, while tourism service exports have also been affected.

He hopes that a series of themed exhibitions or major events can bring more tourists and consumers to the local market, offering a boost to business.

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Chan said the SAR government will continue to leverage the city’s advantages as an international financial, shipping, and trading center, and guide capital toward projects that can accelerate the cultivation of new quality productive forces through targeted policies and efficient markets, while attracting high-tech and leading talent.

Chan said he has visited the Animation-Comic-Game Hong Kong, which runs from July 26 to July 30, to support this “important event in the regional animation industry”.

“Many residents, especially young people, arrived at the venue early that day. Many were not hesitant to shell out money to purchase their favorite items,” he noted.

Exhibitors told Chan that Hong Kong’s anime and comic fans are enthusiastic, and the event has attracted many people from both home and abroad, providing an excellent platform for them to expand their products into the Asian market.

They said they’ll continue to participate in local exhibitions.

tianyuanzhang@chinadailyhk.com