Hong Kong's financial secretary, Paul Chan, expressed optimism in his recent blog post regarding the city's economic outlook. He forecasts that Hong Kong is on track to achieve its 10th consecutive quarter of GDP growth, driven by strong exports, rising investments, and supportive government initiatives.

The anticipated growth reflects a resilient economy that has continued to recover amid a challenging global landscape. Following a 2.5 percent expansion in 2024, the city experienced a 3.1 percent increase in GDP in the first quarter of this year.

Official GDP figures are expected to be released later this week, which will further clarify the ongoing trends within Hong Kong's economy.

Chan highlighted several positive economic indicators, including sustained growth, ongoing capital inflows, a stable property market, improved labor productivity, and increasing median employee incomes. These factors have contributed to enhancing Hong Kong's competitive edge and overall attractiveness for business.

The combination of economic momentum, capital inflows, a recovering stock market, and a stabilizing property sector, in conjunction with the government's focus on tourism and major events, has helped to boost private consumption and overall market sentiment.

Retail sales data for May indicated the first annual increase in 14 months, signaling early signs of market stabilization, while June is also expected to show growth. Following four consecutive quarters of decline, an uptick in private consumption is anticipated in the second quarter.

On the employment front, Chan reported that Hong Kong's job market remains robust with notable income growth. The median monthly income for full-time workers rose by 6.8 percent year-on-year, reaching HK$25,000 ($3,184) during the period from March to May.

Emerging sectors are rapidly evolving, and traditional industries are actively undergoing transformation as both trends contribute to creating new jobs and enhancing compensation packages.

The HKSAR government is prioritizing the development of new economic growth areas with a focus on fostering innovation and technology to leverage advancements in these fields. The goal is to attract businesses while also supporting the expansion of local enterprises.

In addition to these initiatives, the government is exploring new international markets, forging partnerships, and enhancing supply chain capabilities to position Hong Kong favorably amidst a complex geopolitical environment.

Chan emphasized that these efforts, along with an increasing number of businesses choosing to set up or grow in Hong Kong, are set to bolster the city's competitiveness and provide ongoing support for the labor market.

In summary, Hong Kong is confidently moving towards its 10th consecutive quarter of GDP growth, backed by strong foundational elements in trade, investment, and government policies.