Hong Kong is experiencing both contraction and growth in different sectors. While there is room for cautious optimism about its future, it is crucial for the government to develop a coordinated plan to stimulate the economy by retaining current enterprises and attracting new investments to ensure long-term success.
Two contrasting narratives about Hong Kong may discourage investment. The property market has contracted, with residential prices falling 13.2 per cent year on year in the first quarter of 2024, marking the ninth consecutive quarter of decline. The commercial sector faces high vacancy rates and declining rental values.
Despite this, Hong Kong’s economy has shown resilience, with gross domestic product (GDP) growing 3.2 per cent year on year in 2023 and continuing the positive trend in the first half of 2024.
The number of global companies with regional headquarters in Hong Kong decreased by 13.3 per cent between 2019 and 2023, according to Census and Statistics Department data, with firms like FedEx moving to Singapore last year.