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Hong Kong

The economy important for Hong Kong’s retailers to compete

against less pricier peers in the neighboring
at the southeastern tip Shenzhen and Hainan retail markets. And particular
Situated of China, Hong Kong is opportunities can be explored in high-end services
at the center of East Asia. Since its return to China consumption, such as professional and financial
in 1997, it has followed the “one country, two services, education and healthcare.
systems” policy under the Basic Law. Hong Kong
is one of the most services-oriented economies According to the UNCTAD World Investment
in the world and under its laissez-faire system Report 2024 , global FDI inflows to Hong Kong
92
its financial sector has developed into a regional amounted to US$112.7 billion in 2023, ranked
center. In addition, Hong Kong continues to play fourth globally, behind the United States (US$310.9
a significant role as a portal for the national billion), Chinese mainland (US$163.3 billion)
merchandise and capital flows. and Singapore (US$159.7 billion). In terms of FDI
outflows, Hong Kong ranked fifth globally with
Hong Kong’s 2023 GDP resumed growth of 3.2%, US$104.3 billion.
following a contraction of 3.5% in 2022. Overall
91
investment expenditure rose further in 2024, but Hong Kong is a free port and does not levy any
private consumption expenditure turned to a customs tariff on imports or exports. Most products
slight decline. Looking ahead, exports of goods do not need licenses to enter or leave Hong Kong
should sustain a positive performance if external and where licenses or notifications are required,
demand holds up, though trade conflicts would they are only intended to fulfill obligations under
present risks. Fostering new quality productive various international agreements, or to maintain
forces is high on the agenda, particular in the public health, safety or security. In H1 2024,
development of emerging sectors, transformation the value of Hong Kong’s total exports of goods
of traditional manufacturers, promotion of increased 12.2% YoY thanks to the electronic orders
research commercialization and deepening of the externally and the imports of goods went up 7.7%
talent pool. YoY during the period . Looking ahead, the export
93
of Hong Kong is expected to be resilient given the
sustained demand from the electronics sector.
Market highlights These will be required not only for traditional
server systems but also for personal computers,
The Hong Kong economy continued to record smartphones and a range of other digital devices.
moderate growth in the second quarter of 2024,
with real GDP increased by 3.3% YoY, after a 2.8% Hong Kong is not only an important banking
growth in the first quarter. Consumer prices slightly and financial center in Asia Pacific, but also the
rose by 2.5% in July over a year earlier and inflation fourth leading financial center globally, according to
is likely to remain relatively contained. In H1 2024, the Global Financial Center Index . As at the end of
94
the value of total retail sales dropped by 6.6% YoY, 92 UNCTAD World Investment Report 2024, https://unc-
reflecting the changing consumption patterns of tad.org/system/files/official-document/wir2024_en.pdf
visitors and the strong Hong Kong dollar. Quality, 93 The Census and Statistics Department of the HKSAR,
coupled with enhanced creativity and diversity, are https://www.hkeconomy.gov.hk/en/situation/develop-
ment/index.htm
91 The Census and Statistics Department of the HKSAR, 94 https://www.longfinance.net/media/documents/
https://www.censtatd.gov.hk/en/press_release.html GFCI_34_Report_2022.09.28_v1.0.pdf

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