Hong Kong businesses are expressing cautious optimism that the worst may be behind them, with 40 percent of respondents expecting an increase in turnover in 2023 compared with 2022 in a survey released by the Hong Kong General Chamber of Commerce (HKGCC) on Tuesday.

The HKGCC also released its economic forecast for 2023, forecasting real GDP growth of 3.8 percent and overall inflation of 3 percent.

The reopening of the border and removal of COVID-19 control measures are major steps toward reviving Hong Kong’s economy and reassuring investors that the city remains a top destination to do business, the HKGCC noted.

An overwhelming majority of 94 percent agreed that the Hong Kong government should prioritize normalizing cross-border travel with the mainland and the rest of the world.

The Greater Bay Area (excluding Hong Kong) continues to be a popular investment destination, with 34 percent of firms operating in the region saying they will increase capital investment in the next 12 months, and 26 percent planning to expand elsewhere in the Chinese mainland, according to the chamber.

While Hong Kong faces challenges from COVID-19, rising interest rates and weak global demand, which will likely dampen household consumption and business spending, the lifting of COVID-19 restrictions and the resumption of cross-border activity are expected to drive rapid economic recovery.