Special Feature
Worst Is Over, But Challenges Lie Ahead
Worst Is Over, But Challenges Lie Ahead<br/>最壞時刻已經過去   前景仍然充滿挑戰

The overwhelming majority of respondents (94%) in the survey either agreed (75%) or somewhat agreed (19%) that normalizing cross-border travel with the Mainland and the rest of the world should be the top priority for the SAR Government.

Worst Is Over, But Challenges Lie Ahead<br/>最壞時刻已經過去   前景仍然充滿挑戰

Worst Is Over, But Challenges Lie Ahead<br/>最壞時刻已經過去   前景仍然充滿挑戰

Businesses in Hong Kong are cautiously optimistic that the worst may be behind them, according to findings in the Chamber’s Business Prospects Survey, with 40% of respondents expecting an increase in turnover in 2023 compared to 2022. 

After three years of Covid restrictions, the reopening of the border and removal of restrictions are extremely welcome for Hong Kong, as an international city and premier business centre. At a press conference on 9 January to announce the findings, the Chamber also unveiled its 2023 economic forecast, which predicts real GDP to grow by 3.8% with a headline inflation of 3%. 

The overwhelming majority of respondents (94%) in the survey either agreed (75%) or somewhat agreed (19%) that normalizing cross-border travel with the Mainland and the rest of the world should be the top priority for the SAR Government. 

As Hong Kong has now reopened and reconnected with the rest of the world, the Chamber believes it’s time to send a strong message to investors that the city remains one of the best places in the world to do business. We also need to do our utmost to showcase our competitive advantages. 

Compared to findings from a similar survey in 2021, businesses indicated they were planning to maintain a steady course on recruitment in Hong Kong over the next 12 months, with the proportion of respondents hovering around 34%. However, more than half (55%) of the respondents felt that proposals to attract talent by the Chief Executive in his first Policy Address did not go far enough. 

A shortage of skilled workers has made it difficult for those with hiring intentions to find suitable recruits. Unless the issue is addressed properly and effectively, the Chamber believes it will be very difficult to maintain our global competitiveness. 

The Greater Bay Area (excluding Hong Kong) continued to be a favoured investment destination. Among respondents that were already operating in the region, 34% said they would increase capital investment over the next 12 months, compared to 26% planning to expand their presence in the rest of the Mainland.

As Hong Kong recovers from the challenges caused by the pandemic restrictions, it will still have to contend with other headwinds. These include higher interest rates and weakening global demand, which are expected to suppress household consumption and dampen business spending. 

The rollback in Covid-related restrictions and the resumption of cross-border activities will prove to be the most effective catalyst for the economy to recover quickly.

 

 

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