Real estate recovery drives growth forecast higher: FS

Financial Secretary Paul Chan reported on Tuesday that all three components of economic growth—consumption, investment, and exports—performed well in the third quarter. The city's estimate for the third-quarter GDP growth will be released later. Chan had previously announced that Hong Kong's full-year economic growth forecast will be increased, following a stronger-than-expected 5.1 percent GDP growth in the first half of the year.

Other factors, such as visitor arrivals and the real estate market, also support this projection. The residential property market has risen since the end of last year, with an approximate three percent increase last year and seven to ten percent this year. Commercial real estate, particularly in central business districts, has seen significant improvements in office rentals, rental prices, and vacancy rates.

The influx of visitors towards the end of the year is also expected to benefit the retail and catering sectors. Although certain industries like construction, catering, and retail face higher unemployment rates, Chan emphasized that the overall employment situation remains stable at around 3.9 percent. In forecasting next year's growth, Chan stressed that government economists are currently evaluating several key factors, including high interest rates, geopolitical uncertainties, upcoming elections in major economies, and the reallocation of international funds.