Hong Kong 2024: Towards a New Opportunity and a New Horizon: The Economy Moves Steadily Forward

In 2024, the Central Authorities have successively rolled out measures to benefit Hong Kong, boosting the Hong Kong economy; the political and business sectors in Hong Kong have also taken the initiative to recognize, respond to and seek changes, and a consensus on striving for economic development has continued to be forged. Hong Kong's economy has been exploring new business models and cultivating new kinetic energy, and the room for development has been widening.

Measures to Benefit Hong Kong “Won Ding and Won Wealth”

This year, the central government intensively introduced a series of measures to benefit Hong Kong tourism. March and May, twice to expand the mainland to Hong Kong and Macao “individual tours” of the city to 59; July 1 onwards, mainland resident travelers from Hong Kong into the country to carry baggage tax-free allowance from 5,000 yuan yuan to 12,000 yuan; from December, Guangdong Province Shenzhen residents to travel to Hong Kong “one visa, multiple travel” policy officially implemented ......

This series of measures has provided strong support for Hong Kong's economic development and brought about the effect of “prosperity and wealth”. In the first 11 months, the number of mainland visitors to Hong Kong reached 30.94 million, an increase of 30% year-on-year.

The Chairman of the Hong Kong General Chamber of Commerce (HKGCC), Ms. Rachel Chan, said that the expansion of the Individual Visit Scheme (IVS) cities has provided sustained impetus to the healthy development of Hong Kong's tourism industry. The resumption of the “multiple-entry permits” policy has also injected new momentum into Hong Kong's tourism-related industries, such as catering and retail, and boosted market confidence.

Expanding New Opportunities by “Going Global” and “Bringing in”

Officials of the HKSAR Government have led the business sector to visit ASEAN, the Middle East, Europe, the United States and South America on a number of occasions this year to capitalize on Hong Kong's advantage of extensive international connections, consolidate traditional markets and explore emerging markets.

In November this year, the Chief Executive of the HKSAR, Mr. K.C. Lee, led a delegation to the capital of Peru, Lima, to attend the Asia-Pacific Economic Cooperation (APEC) meeting, witnessed the signing of a free trade agreement between Hong Kong, China and Peru. Thanks to this, goods of Hong Kong origin with about 98.3% of tariff lines can enjoy duty-free access to the Peruvian market.

“While Hong Kong businesses expand their operations in Latin America, Peruvian companies can do business in Hong Kong as well as access the Guangdong-Hong Kong-Macao Greater Bay Area market through Hong Kong.” Yau Ying-wah, Secretary for Commerce and Economic Development of the HKSAR Government, said.

Investment promotion has been equally fruitful. The latest statistics show that the number of Hong Kong-based companies with parent companies overseas or in the mainland has increased to 9,960 this year, and the number of Hong Kong start-ups has risen to about 4,700, both of which are record highs.

Yau Ying-wah said, “The number of Hong Kong-based companies from overseas still continues to grow, indicating that companies have taken a pragmatic approach in choosing to make Hong Kong their base for expanding their business in Asia, and that they are confident about Hong Kong's investment prospects.”

Starting a new engine for Hong Kong's development

This year, Hong Kong's political and business sectors have taken the initiative to recognize, respond to and seek changes, integrate into the overall situation of national development, and seize development opportunities.

Hong Kong's “Mega Events Economy” has seen many highlights. About 210 mega events were held in Hong Kong this year, attracting about 1.7 million visitors and bringing about HK$7.2 billion in spending to Hong Kong, with an added value of about HK$4.3 billion to the economy. It is expected that another 93 events will be held in Hong Kong in the first half of next year, attracting about 840,000 visitors, generating about HK$3.3 billion in spending and adding value to the economy of about HK$1.8 billion.

At the end of November, 85 enterprises signed the “Letter of Intent to Support and Participate in the Development of the Northern Metro Area” with the HKSAR Government, and 32 agreements were signed among enterprises to participate in the development of the Northern Metro Area, amounting to over HK$100 billion. The business sector has taken practical actions to cast a vote of confidence in the Northern Metro Area, the city of the future, and to kick-start a new engine for Hong Kong's development.

With Hong Kong's Gross Domestic Product (GDP) rising by 2.6% in real terms in the first three quarters of 2024 as compared with the same period of the previous year, and the foreign trade and employment markets performing well during the year, it is forecast that the annual growth rate in real terms will be 2.5%, which is at the level of the forecast range.

Looking ahead to 2025, as the Chief Executive of the HKSAR, Mr. Lee Ka-chiu, said at the Hong Kong Economic Summit, all sectors in Hong Kong will be proactive, promote reforms, stimulate innovation and vitality, and open up new areas of development for the Hong Kong economy.