Hong Kong Q3 GDP up 4.1% on year, but lower than forecast

Hong Kong Q3 GDP up 4.1% on year, but lower than forecast  Reuters

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Oct 31, 2023 - 16:00
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Hong Kong Q3 GDP up 4.1% on year, but lower than forecast

Hong Kong’s Economic Growth Accelerates in Q3, but Misses Forecast

Hong Kong Economic Growth

Hong Kong’s economic growth accelerated in the third quarter to 4.1% from a year earlier, according to official advance estimates. This growth was supported by inbound tourism and private consumption, contributing to the revival of the economy.

However, the reading fell short of the median forecast of 5.2% in a Reuters poll of 13 economists. Despite this, it still outperformed the 1.5% expansion in the second quarter and the 2.9% growth in the first quarter.

Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs) play a crucial role in Hong Kong’s economic growth. Inbound tourism and private consumption, which supported the revival of the economy, align with SDG 8: Decent Work and Economic Growth. These factors contribute to creating sustainable jobs and improving the overall economic well-being of the population.

Despite the positive growth, Hong Kong still faces challenges due to a difficult external environment characterized by geopolitical tensions and tight financial conditions. These challenges impact exports of goods and investment, as well as consumption sentiment. Addressing these challenges aligns with SDG 17: Partnerships for the Goals, as it requires collaboration between different stakeholders to create a more favorable external environment for economic growth.

Private Consumption and Exports

Private consumption expenditure increased by 6.5% in the quarter, compared to 7.7% growth in the previous three months. This growth was driven by a surge in visitor arrivals, contributing to SDG 8: Decent Work and Economic Growth.

On the other hand, goods exports continued to decline due to weak external demand. Exports fell by 8.6% in the third quarter, an improvement from the 15.1% drop in the second quarter. Addressing the challenges faced by exports aligns with SDG 9: Industry, Innovation, and Infrastructure, as it requires promoting sustainable industrial development and increasing technological capabilities.

Thomas Shik, chief economist at Hang Seng Bank (0011.HK), stated that the external environment remains challenging and interest rates are elevated, which continue to weigh on trade and investment. Overcoming these challenges is crucial for achieving SDG 8: Decent Work and Economic Growth and SDG 9: Industry, Innovation, and Infrastructure.

The quarterly GDP growth in July-September was 0.1% on a seasonally adjusted basis, lower than the forecast of 1.4% in the Reuters poll.

Government Measures and Outlook

To address the challenges and stimulate economic growth, Hong Kong’s leader John Lee announced stimulus measures focusing on reviving the property market, attracting businesses, and talent. These measures align with SDG 11: Sustainable Cities and Communities, as they aim to create a more sustainable and vibrant urban

SDGs, Targets, and Indicators Analysis

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

The article discusses Hong Kong’s economic growth, which is related to the goals of promoting decent work and economic growth (SDG 8), developing industry, innovation, and infrastructure (SDG 9), and encouraging responsible consumption and production (SDG 12).

2. What specific targets under those SDGs can be identified based on the article’s content?

  • Target 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.
  • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
  • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.

The article mentions Hong Kong’s economic growth rate of 4.1% in the third quarter, which aligns with the target of sustaining per capita economic growth (Target 8.1). It also discusses the role of private consumption and tourism in supporting economic growth, which relates to the target of promoting inclusive and sustainable industrialization (Target 9.2). Additionally, the article mentions the need for responsible consumption and production due to weak external demand and declining goods exports, which connects to the target of achieving sustainable management and efficient use of natural resources (Target 12.2).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  • Indicator 8.1.1: Annual growth rate of real GDP per capita.
  • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and employment.
  • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.

The article mentions Hong Kong’s economic growth rate (4.1% in the third quarter) as an indicator of progress towards sustaining per capita economic growth (Indicator 8.1.1). It also discusses the role of private consumption and tourism in supporting economic growth, which can be measured by manufacturing value added as a proportion of GDP and employment (Indicator 9.2.1). Additionally, the article implies the need for efficient use of natural resources due to weak external demand and declining goods exports, which can be measured by material footprint, material footprint per capita, and material footprint per GDP (Indicator 12.2.1).

Table: SDGs, Targets, and Indicators

SDGs Targets Indicators
SDG 8: Decent Work and Economic Growth Target 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. Indicator 8.1.1: Annual growth rate of real GDP per capita.
SDG 9: Industry, Innovation, and Infrastructure Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. Indicator 9.2.1: Manufacturing value added as a proportion of GDP and employment.
SDG 12: Responsible Consumption and Production Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: reuters.com

 

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