Hong Kong's economy expanded by 2.4% year-on-year in the fourth quarter, marking its eighth consecutive quarter of growth, according to preliminary official estimates released on Monday.

The figure slightly exceeded the 2.3% growth forecast by eight economists in a Reuters news agency poll.

The economy grew by 1.9% in the third quarter, 3.1% in the second quarter, and 2.8% in the first quarter of 2024.

Overall, real GDP for 2024 saw moderate growth of 2.5%, down from 3.2% in 2023.

The government attributed the Q4 performance to strong external demand supporting goods exports and increased visitor arrivals driving service sector growth.

While overall investment expenditure rose, private consumption declined as residents curbed spending and leveraged the Hong Kong Dollar's strength to shop across the border in the mainland.

“Looking ahead, the Hong Kong economy is expected to register further growth in 2025 despite heightened uncertainties in the external environment,” a government spokesperson said.

“Trade protectionist policies implemented by the US may disrupt global trade flows and adversely affect Hong Kong's goods exports. They may also lead to a slower pace of interest rate cuts in the US and keep the Hong Kong Dollar strong for longer,” the spokesperson added.

Moreover, on a seasonally adjusted quarterly basis, Hong Kong's economy grew by 0.8% in the October-December period, rebounding from a 0.1% decline in July-September. This followed 0.4% growth in April-June and a 1.3% expansion in January-March, according to official data, Reuters reports.

Private consumption expenditure fell by 0.2% in Q4, improving from a 1.3% decline in Q3 and a 1.7% drop in Q2, after a 1.0% increase in Q1.

Furthermore, goods exports grew by 1.2% in the fourth quarter, down from a 4.0% increase in the third quarter and 7.4% and 6.7% growth in the second and first quarters, respectively.

Imports of goods rose by 0.1% in the fourth quarter, compared to 2.8% growth in the third quarter, 3.4% in the second quarter, and 3.3% in the January-March period.