HONG KONG (Reuters) - Hong Kong's economy expanded by 1.8% in the third quarter from a year earlier, the government said on Friday, adding that it should continue to grow for the remainder of the year, although at a forecast 2024 rate of 2.5%, revised from a 2.5%-3.5% range.
The economy expanded by 3.2% in the second quarter and 2.8% in the first quarter of 2024.
"While the external environment has turned more challenging recently, the Hong Kong economy is expected to maintain its growth momentum for the remainder of the year," government economist Adolph Leung said in a statement.
On a seasonally adjusted quarterly basis, the economy shrank by 1.1% in July-September. That compared to a 0.3% increase in April-June and 2.5% growth in January-March.
"Taking into account the actual outturn in the first three quarters of the year and the latest developments of the global and local situation, the real GDP growth forecast for 2024 as a whole is revised to 2.5%, from 2.5%-3.5% in the August round of review," Leung said.
The forecast rates of underlying and headline consumer price inflation for 2024 are revised down to 1.1% and 1.7% respectively, from 1.3% and 1.9%, Leung added.
Although tourism has rebounded since COVID, with 46 million visitors expected this year, consumption and retail spending remain sluggish, while stock listings have dried up and capital flight remains a challenge.
Last month, the city's leader John Lee pledged in his third annual policy address to reform and revive the economy and financial markets and highlighted the need to explore new growth areas to promote development and economic growth.