Hong Kong economy on course for modest growth in 2022

07 Dec 2021

The economic outlook in Hong Kong has improved and is on track for modest growth in 2022, according to the results of a survey undertaken by accounting firm, CPA Australia.

A total of 214 accounting and finance professionals in Hong Kong were surveyed about the local economy. As many as 67% forecast Hong Kong’s GDP to grow next year, of those 52% predict the economy will grow as much as 2.9%, whilst 15% believe it will grow by 3% or more over the year.

Janssen Chan FCPA (Aust.) CPA Australia Divisional President of Greater China stated: "Measures to combat the pandemic and stimulate the local economy, such as the consumption voucher scheme, have bolstered the city's economic recovery and prospects. Most respondents are cautiously optimistic about Hong Kong's economic outlook and think the economy will grow at a modest pace.

"However, restrictions on cross-boundary travel and the pandemic remain the top barriers to economic growth nominated by respondents. Despite improvements in overall business and economic sentiment, we should be mindful of the risk of an unequal economic recovery among different industries and the ongoing challenges posed by COVID, such as the emergence of the Omicron variant."

Moreover, 53% of respondents forecast their firm’s revenue will increase in 2022, with 47% expecting revenue growth of up to 29%. Chan added: "The survey findings indicate that business confidence in Hong Kong has improved over the past 12 months. Last year, only 26% of respondents expected their company's revenue to increase in 2021. In contrast, reflecting a better-than-expected recovery, 50% of respondents said revenue will grow this year.”

In addition, 60% believe bolstering Hong Kong’s position as a global financial hub will improve the city's international competitiveness. The majority of respondents to this survey stated supporting fintech and other digital finance innovation, as well as attracting and retaining finance talent, would help to achieve this goal.