Each year, ADVANTAGE AUSTRIA, the official organization for promoting Austrian foreign trade, conducts the Global Business Barometer (GBB) survey. This confidential online study, carried out in collaboration with the Vienna University of Economics and Business, gathers insights from Austrian subsidiaries worldwide. Under the theme "Sharing is Caring," we are pleased to present this year’s findings.
Hong Kong Market Highlights
In October and November 2024, Austrian companies in Hong Kong shared their perspectives on the economic situation over the past 12 months.
A majority of respondents, 59%, believe the global economic climate has worsened, while 53% feel the same about Hong Kong's economy. The outlook for the next 12 months remains uncertain, with 41% expecting conditions to deteriorate further, while 35% foresee stability. Compared to 2023 one can see that in 2023 47% believed that the situation will stay the same and only 29% thought that it will get worse.
Business performance among Austrian companies in Hong Kong shows mixed results. Out of 17 participants, 4 reported a decline in turnover, while 7 said it had remained the same. Most companies stated that order books, capacity utilization, workforce size, and investment levels have remained stable, and they expect little change in these areas over the next year.
Participants highlighted several challenges affecting their operations. The lack of a qualified labor force, rising raw material costs, and limited access to credit were identified as significant issues. On the positive side, digitalization, local supplier quality, and employment laws were rated favorably.
When it comes to artificial intelligence, nine respondents predicted that the use of AI-based products and services within their companies would increase over the next 12 months. However, systemic competition between global powers and the risk of decoupling between East and West, potentially leading to increased protectionism, were seen as the biggest threats to their business activities.
Despite these challenges, ADVANTAGE AUSTRIA’s role in supporting Austrian companies in Hong Kong received even higher praise this year, with 14 participants rating their involvement as good or very good. This marks an improvement compared to 2023, when 13 participants rated their support as good and only one as very good. While investments have increased, capacity utilization remains low, and concerns about declining order volumes persist.
