Financial Secretary Paul Chan Mo-po delivers a speech during the Multilateralism and Globalization in an Era of Strategic Competition & Implications for Asia – IFF Hong Kong Conference cum Inaugural Ceremony of IFF Hong Kong Center at Hong Kong Monetary Authority in IFC on May 5, 2023. (ANDY CHONG / CHINA DAILY)
The economic recovery in Hong Kong is still in its nascent stages, requiring reinforced efforts to bolster its momentum, Financial Secretary Paul Chan Mo-po says.
Writing in his official blog on Sunday, Chan said, “We must exert full efforts to strengthen the local recovery momentum” in light of external uncertainties, such as interest rate hikes.
On Wednesday, the US Federal Reserve raised interest rates by a quarter of a point.
“Interest rates are expected to remain elevated for a period of time,” the finance chief said.
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Furthermore, the financial troubles faced by multiple banks in the wake of Silicon Valley Bank's collapse in the United States have exacerbated market conditions, he added.
I am confident that Hong Kong's economy will experience consecutive quarterly improvements, surpassing the performance of the previous year.
Paul Chan Mo-po, Financial Secretary of the HKSAR government
However, Chan remains upbeat about the city’s economy this year, with the government’s policies stimulating domestic demand and continuous improvement in the Chinese mainland’s imports and exports.
“I am confident that Hong Kong's economy will experience consecutive quarterly improvements, surpassing the performance of the previous year,” he said.
The remarks came in light of the increasing influx of visitors to Hong Kong and the government's launch of the Happy Hong Kong campaign.
A series of events, including hosting food markets for locals and tourists, under the Happy Hong Kong campaign have created a joyful atmosphere in society, Chan noted.
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He said the distribution of HK$3,000 ($382) consumption vouchers last month has also injected momentum into the retail and dining sectors.
Consumption expenditure in the first quarter of this year recorded a significant year-on-year increase of 12.5 percent.
Retail sales during the same period also saw robust year-on-year growth of 24 percent, maintaining a consistent trend of surpassing HK$ 30 billion per month for four consecutive months from December to March.
The total revenue of restaurants in the city in the first quarter of this year surged by 82 percent year-on-year to reach HK$ 27.56 billion.
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However, the overall export of goods decreased by 18.7 percent from the previous year, which partly contributed to a mild 2.7 percent growth of the Hong Kong economy in the first quarter compared to the same period last year.
Chan officiated the opening ceremony of the food market on Saturday in Sha Tin. The two-day food fair, which showcased Chinese cuisine and local snacks, was among the events held under the Happy Hong Kong campaign.