Hong Kong’s economy struggled post-pandemic due to cyclical factors and structural challenges, including geopolitical tensions and talent drain.
Post-Pandemic Economic Recovery and Its Shortcomings
Hong Kong was one of the last places to reopen after COVID-19, but its economic recovery has been lackluster. The city struggled with a blend of cyclical and structural obstacles, hampering its pre-pandemic prosperity.
Challenges in Economic Sectors
Despite growth in private consumption, imports, exports, and capital investment remained weak. The visitor arrivals increased but were still only 65 per cent of their 2018 level. Residential property prices briefly rose at the beginning of the year but declined by roughly 5 per cent in the second half.
In the first half of 2023, Hong Kong stocks reached a four-year low, with an average trade value of just US$14 billion (HKD$116 billion). The…
