Hong Kong economy set for continued growth in second quarter, Paul Chan says Hong Kong’s economy is set for continued growth in the second quarter, the finance minister has said, as the government vows to step up measures to promote retraining, encourage technology upgrades and support employment. Financial Secretary Paul Chan Mo-po said on Sunday that the 10th consecutive quarter of year-on-year growth was driven by strong exports, a rebound in private consumption and a series of mega-events held in the city. The gross domestic product (GDP) figure is due to be revealed on Thursday. “[We are] going all out to explore new growth points, especially vigorously supporting the development of innovation and technology,” Chan wrote in his weekly blog post. “We are also committed to opening up new overseas markets, finding new partners for cooperation and developing supply chain management centres.” Hong Kong’s economy has posted year-on-year growth of between 1.6 per cent and 4.3 per cent every quarter since the first three months of 2023. The economy in the first quarter of 2025 grew 3.1 per cent compared with the same period last year, following a 2.5 per cent year-on-year expansion in the fourth quarter of 2024. GDP growth is estimated to reach between 2 and 3 per cent this year, according to the financial secretary’s predictions in February. “Despite the complex external environment, the Hong Kong economy has shown strong resilience,” Chan said of the second quarter growth. “The growth is driven by export activities, overall investment and private consumption. The upward momentum is expected to continue, which will be the 10th consecutive quarter of growth.” He cited the end of a 14-month contraction in retail sales in May, which he said underlined that the market had stabilised. Chan added that he was “cautiously optimistic” about June’s retail numbers. “This means private consumption could end its four consecutive quarters of decline in the second quarter this year and rise instead,” he said. The second quarter GDP numbers were also helped by a 15.5 per cent jump in exports in May against the same period last year, as exporters raced to raced to front-load shipments to beat the July deadline of a US-China tariff truce. The Post has reported that a high-level American business delegation organised by the US-China Business Council and led by FedEx chief executive Rajesh Subramaniam, the council’s board chair, is expected to visit Beijing for trade talks this week. The latest jobless rate for the April to June period stood steady at 3.5 per cent, as industries such as construction faced more serious unemployment. The median monthly employment income for full-time employees from March to May rose by 6.8 per cent year-on-year to HK$25,000 (US$3,185). Chan said the economic recovery was uneven as “some labour-intensive traditional industries such as retail and catering are still facing greater pressure”. To address these challenges and deepen the city’s economic transformation, the government would step up measures to promote vocational retraining and technology literacy training to support employment, Chan said. He said the Hong Kong Investment Corporation, the government’s investment arm, would lead a delegation of technology firms to Malaysia and Brunei on Monday to seek new opportunities and meet with patient capital institutions and industry representatives. “Economic transformation and upgrading is an inevitable and continuous dynamic process,” Chan wrote. “Flexibly adapting to the geopolitical landscape, vigorously promoting the development and application of innovation and technology, striving to attract global capital, and cultivating talent for the future are the keys to enhancing competitiveness and upgrading the economic structure.” Economists offered varied forecasts for the second quarter. Terence Chong Tai-leung, an associate professor at the Chinese University of Hong Kong’s department of economics, suggested growth could be between 2.5 and 3.5 per cent. Professor Lee Shu-kam of Shue Yan University’s department of economics and finance said that while government investment promotion was good for the long term, it was important to address the immediate impact on residents. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3319736/hong-kong-economy-set-continued-growth-second-quarter-paul-chan-says?module=Hong%20Kong%20Economy&pgtype=section (ICE HONG KONG)

Fonte notizia: South China Morning Post