
Hong Kong’s economic growth slowed to 2.5% in 2024, down from 3.2% the previous year, as residents spent more outside the city, the government said, warning of heightened uncertainties ahead. The post-pandemic rebound lost momentum amid China’s economic slowdown, with private consumption dropping 0.6% as more Hong Kong residents opted for cheaper goods and services in Shenzhen. Financial Secretary Paul Chan had initially projected up to 3.5% growth but revised it to 2.5% in November. The government expects growth in 2025 despite risks from U.S. trade protectionism, which could hurt exports and delay interest rate cuts. High borrowing costs have weighed on consumption and investment, while a HKD100bn (USD12.8bn) deficit adds fiscal pressure. Exports rose by 4.7%, driven by stronger external demand and increased visitor arrivals.