Hong Kong marked the 26th anniversary of its return to the motherland on July 1. The economy of Hong Kong is set on a gradual recovery following the pandemic.

Economic activities in Hong Kong strengthen

The Hong Kong General Chamber of Commerce raised its full-year economic growth forecast for Hong Kong from 3.8 percent for 2023 to 4.2 percent.

Hong Kong's status as an international business hub has not been shaken by COVID-19. More than 60 percent of Hong Kong companies surveyed by United Overseas Bank are optimistic about their outlook for 2023. 

In addition, companies from Germany, Japan, the U.S., and other countries have opened or expanded their businesses in the city this year, according to InvestHK reports.

Companies in Hong Kong need to restructure their supply chains and accelerate digital transformation with economic activity back to normal. Hence, they need to increase investment, added George Leung, CEO of the Hong Kong General Chamber of Commerce.

Consumption in Hong Kong picks up

More than ten million visitors arrived in Hong Kong in the first five months of 2023, representing 40 percent of pre-pandemic levels, according to the Hong Kong Tourism Board.

The recovery of tourism in Hong Kong boosted the local retail industry and further stimulated consumption. 

Official data evidenced the multiplier effect, showing that private consumption expenditure in Hong Kong rose 12.5 percent in the first quarter compared to the year before, a sharp acceleration from the 1.7 percent rise in the previous quarter.

Increased tourists and improved local consumption have become the driving force supporting Hong Kong's economic recovery. 

The city would achieve its economic goals in the coming six months, thanks to recovery of consumption and tourism, said Paul Chan, the Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government, last Sunday.