Hong Kong economy grows by 2.5% in 2024, in line with forecasts

Advance figures also show gross domestic product grew by 2.4 per cent year on year in the fourth quarter

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Hong Kong’s economy is undergoing “structural adjustments”, the finance chief says. Photo: Edmond So

Published: 4:50pm, 3 Feb 2025Updated: 10:54pm, 3 Feb 2025

Hong Kong’s economy grew by 2.5 per cent in real terms last year, easing from 3.2 per cent expansion in 2023, preliminary figures released on Monday showed, with the government predicting further growth for 2025 despite heightened uncertainties brought by US trade protectionism.

But the city’s retail sales in December fell by 9.7 per cent compared with the same period in 2023, marking the tenth consecutive month of year-on-year declines. A survey by a retail industry association, meanwhile, found that 60 per cent of businesses predicted a decline in sales for the first two months this year.

Advance figures by the Census and Statistics Department also showed gross domestic product (GDP) in the fourth quarter grew by 2.4 per cent year on year in real terms, compared with a revised 1.9 per cent year-on-year increase in the third quarter.

The city’s economy grew by 2.8 per cent and 3.1 per cent in the first and second quarters, respectively.

A government spokesman said Hong Kong’s economy was expected to register further growth this year despite heightened uncertainties in the external environment.

“Trade protectionist policies implemented by the US may disrupt global trade flows and adversely affect Hong Kong’s goods exports. They may also lead to a slower pace of interest rate cuts in the US and keep the Hong Kong dollar strong for longer,” he said.