HK economy has bounced back thanks to government support

The Hong Kong Special Administrative Region's GDP in 2024 is estimated to have increased by 2.5 percent year-on-year. That is a hard-won performance.

Many indicators had returned to normal last year reflecting the new dynamism in Hong Kong's economy as a result of effective government policy measures.

In 2024, the SAR government promulgated a series of policy plans, including development blueprints for cultural and creative industries, and the tourism sector, and implemented such programs as the capital investment migration scheme, and the Greater Bay Area youth employment scheme. It also held more than 200 events such as the Financial Events Week, Hong Kong Maritime Week, and the Global Talent Summit further enhancing Hong Kong's attractiveness and injecting vigor into Hong Kong's economic development.

The Chinese central government also introduced a series of policy measures to support Hong Kong, including making it more convenient for mainland people to travel to Hong Kong and optimizing the interconnection and swap mechanism between the mainland and Hong Kong's interest rate markets.

In 2024, the SAR government granted the first renewal of the land lease beyond July 2047, giving global investors confidence that "one country, two systems" will remain unchanged. Meanwhile, Hong Kong's population continues to grow, exceeding 7.5 million at the end of 2023 and further increasing to 7.53 million in 2024. Steady population growth is the best evidence of Hong Kong's fine business environment and offers a solid foundation for sustained economic development.

The SAR still faces challenges brought about by the slow recovery of the global economy, the anti-globalization trend and shrinking private consumption. But the SAR has built up an endogenous driving force against external fluctuations, which will help consolidate Hong Kong's traditional advantages in finance, trade and shipping, and provide more support for its growth.

ECONOMIC DAILY