Real estate recovery drives growth forecast higher: FS

Financial Secretary Paul Chan announced that Hong Kong's full-year economic growth forecast will be revised upwards due to stronger-than-expected 5.1 percent GDP growth in the first half of the year. The financial chief highlighted that all three drivers of economic growth - consumption, investment, and exports - performed well in the third quarter.

Visitor arrivals for the year are expected to surpass the target of 50 million, while the real estate market is showing signs of improvement. In the residential property market, growth has been steady, with an approximate increase of three percent last year and between seven to 10 percent this year. Commercial real estate, particularly office rentals in central business districts, has also shown significant improvements in rental prices and vacancy rates.

The influx of visitors towards the end of the year is expected to positively impact the retail and catering sectors. Although certain industries face higher jobless rates, the overall employment situation remains stable, with unemployment at around 3.9 percent. Government economists are currently assessing the impact of factors such as high interest rates, geopolitical uncertainties, upcoming elections in major economies, and international fund reallocation on next year's economic growth.