Hong Kong has revised its economic growth forecast for 2023, expecting a GDP expansion in the range of 4% to 5%, compared with a previous estimate of 3.5% to 5.5%, according to the Census and Statistics Department. This tempered outlook is attributed to a challenging global economic environment which is expected to weigh on Hong Kong’s exports. Despite these headwinds, the government highlighted that inbound tourism and private consumption will remain key growth drivers. The city's GDP grew 1.5% year-on-year in the April-to-June period but contracted by 1.3% on a quarter-to-quarter basis. These figures surprised economists, who had expected a 3.5% increase as the city recovers. Financial Secretary Paul Chan noted more cautious spending among residents, with some favouring neighbouring Shenzhen as a tourist and shopping destination.