Hong Kong expects 2021 GDP to grow 6.4% amid firm recovery

HONG KONG -- The Hong Kong Special Administrative Region government on Friday forecast the region's gross domestic product (GDP) to grow 6.4 percent by the end of this year, as trade and consumption recovery picks up steam.

Hong Kong's economic recovery became more entrenched in the third quarter alongside the further revival of global economic activity and stable local epidemic situation, said HKSAR government economist Andrew Au.

Real GDP grew by 5.4 percent year-on-year in the third quarter, following a 7.6-percent growth in the second quarter. For the first three quarters as a whole, real GDP grew by 7.0 percent over a year earlier.

The pace of expansion moderated somewhat on account of the stronger-than-expected growth in the first half of the year and the higher base effect, Au said.

"Nonetheless, the stable local epidemic situation has created favorable conditions for the further revival of domestic activity," said the economist.

During the July-September period, private consumption expenditure rose appreciably by 7.1 percent year-on-year in real terms thanks to the stable local epidemic situation, improved labor market conditions and the Consumption Voucher Scheme.

Total exports of goods grew notably by 14.2 percent year-on-year in real terms in the third quarter, supported by the continued revival of major economies and vibrant regional trade flows.

To pave the way for a broader-based economic recovery, it is essential for the community to strive towards more widespread vaccination and abide by the anti-epidemic measures, Au said.

"Provided that the local epidemic remains under control, a solid year-on-year growth in the fourth quarter should be attainable for the Hong Kong economy," he said.