Hong Kong economic growth slows to 1.5% in Q2, gradual recovery seen
Hong Kong economic growth slows to 1.5% in Q2, gradual recovery ... Reuters.com
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Sustainable Development Goals (SDGs) and Hong Kong’s Economy
Summary:
- Hong Kong’s GDP grew by 1.5% in the second quarter of this year, compared to 2.9% in the first quarter.
- The second quarter figure remained the same as the preliminary estimate made in July.
- Hong Kong’s economy is expanding more slowly than the forecasted 3.6% year-on-year growth by economists.
- The government has revised its growth forecast for this year to a range of 4.0% to 5.0%.
Introduction
Hong Kong’s economy grew by 1.5% in the second quarter of this year, according to official seasonally-adjusted data. This growth rate represents a slowdown from the first quarter, primarily due to weakened demand for exports and a decline in investment spending.
SDGs and Hong Kong’s Economic Growth
Hong Kong’s economic growth is closely linked to the Sustainable Development Goals (SDGs) set by the United Nations. The SDGs aim to address global challenges such as poverty, inequality, and climate change. Achieving sustainable economic growth is a key component of the SDGs.
Economic Performance
Despite two consecutive quarters of growth, Hong Kong’s economy is expanding at a slower pace than expected. Economists had forecasted a year-on-year growth rate of 3.6%. The government has revised its growth forecast for this year to a range of 4.0% to 5.0%, down from the previous range of 3.5% to 5.5%.
Challenges and Opportunities
The difficult global economic environment continues to pose challenges for Hong Kong’s economy. Weak demand for exports, particularly from mainland China, and tight financial conditions are among the key challenges. However, there are also opportunities for growth, such as inbound tourism and private consumption.
Tourism Industry Recovery
Hong Kong’s tourism industry is gradually recovering, supported by increased travel from the mainland and Southeast Asia. Preliminary visitor arrivals for July increased by 31% compared to June. The Hong Kong Tourism Board (HKTB) reported more than 16 million visitors in the first seven months of this year.
Outlook and Risks
The outlook for Hong Kong’s economy remains uncertain due to the challenging external environment. Exports are expected to continue facing pressure, and investment sentiment, particularly in the property sector, is negatively affected by high interest rates. Downside risks exist, especially in the face of weak demand from mainland China and globally.
Inflation Forecast
Hong Kong has lowered its full-year underlying consumer price inflation forecast to 2.0% from 2.5%. The forecast for the headline inflation rate has also been revised down to 2.4% from 2.9%.
Conclusion
Hong Kong’s economy grew by 1.5% in the second quarter, reflecting a slowdown compared to the first quarter. Achieving sustainable economic growth in line with the SDGs remains a priority for Hong Kong. The government’s revised growth forecast and efforts to boost private consumption and inbound tourism will play a crucial role in driving economic recovery.
Reporting by Twinnie Siu and Donny Kwok; Editing by Farah Master and Simon Cameron-Moore
Our Standards: The Thomson Reuters Trust Principles.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries.
- SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- GDP growth rate (1.5% in Q2)
- Investment spending (fell in Q2)
- Exports demand (weakened in Q2)
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries. | GDP growth rate (1.5% in Q2) |
| SDG 9: Industry, Innovation, and Infrastructure | SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries. | Investment spending (fell in Q2) |
| SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries. | Exports demand (weakened in Q2) | |
| SDG 12: Responsible Consumption and Production | SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | N/A |
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Source: reuters.com
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