Amid slower-than-expected economic recovery, the Government revised down its latest real GDP growth forecast for the year in November. While a slew of policy measures has been rolled out to create strong impetus for growth, the business community needs to proactively seize opportunities if a win-win outcome is to be achieved.

Hong Kong has returned to normalcy following the lifting of quarantine requirements last December. Since then, the F&B, tourism and retail sectors, which were hit particularly hard during the pandemic, have shown signs of gradual improvement. 

Despite this, exports have remained weak, indicating the economy is yet to fully recover. In August, GDP growth in real terms for 2023 was forecast to be 4-5%, which was adjusted downward to 3.2% in November. Due to factors such as external economic conditions and geopolitical tensions, exports of goods have remained subdued, whereas inbound tourism and domestic consumption continue to be the key drivers of economic growth.

To revitalize Hong Kong in the post-pandemic era, the Government has launched various promotional events, including the “Happy Hong Kong” and “Night Vibes Hong Kong” campaigns. With active support from the business community, these initiatives have served to give a short-term boost to the market to a certain extent. In addition to short-term stimulating measures, the Government is also stepping up efforts to attract businesses and talent for long-term economic growth. 

To this end, Chief Executive John Lee led delegations to the Middle East and ASEAN countries to explore business opportunities for Hong Kong. Countries in the Middle East are looking to diversify their economies away from oil dependence for sustainable growth, while ASEAN countries are rich in natural resources. Hong Kong also offers many advantages, such as professional services including finance, business and trade, I&T, aviation and logistics, coupled with its position in the Greater Bay Area and the backing of the motherland. As such, cooperation between these economies and regions will open up tremendous opportunities. 

The latest Policy Address has introduced measures to attract businesses and talent. Dedicated offices will also be set up to foster the growth of I&T, cultural and creative industries. Meanwhile, developing tourism that focuses on local characteristics is encouraged to revive the tourism sector. With these developments ahead, there will be more room for business participation in the development of the Northern Metropolitan Area in aspects such as financing, construction, etc.

Any plan needs to be implemented for it to reap benefits. As the Government strives to enhance Hong Kong’s competitiveness with a multi-pronged approach, the business community should play its part by grasping business opportunities as they arise. Otherwise, economic development will be hard to come by.

Jeffrey Lam
jeffrey@jeffreylam.hk