Hong Kong's economy grew by 2.7% in Q1 2023, according to John Lee, the Special Administrative Region’s chief executive in a surprise announcement ahead of the official data's release. The result breaks four consecutive quarters of contraction, driven by faster growth in mainland China's economy and increased aviation capacity in Hong Kong. Despite continued export declines, Lee said the economy's growth in Q2 2023 will be better than in Q1, and this year's overall economic performance will be better than in 2022. The territory's economy is expected to benefit from mainland consumer spending and a rebound in travel, with the easing of all Covid-related restrictions in Hong Kong. However, the economy also faces inflationary pressure and monetary tightening in advanced economies, as well as global trade challenges.