Financial Secretary Paul Chan on Sunday said a rise in tourist traffic and an increase in events being held in Hong Kong will boost the first quarter local economy which will be announced later this week.

Writing on his blog, Chan said the local retail sales had increased for three months consecutively and the number of tourists had risen after the border fully reopened earlier this year.

He said these positive factors will offset a weak export performance and will underpin an economic improvement in the first quarter.

Chan said the HK$3,000 consumption vouchers handed out earlier this month and a series of "Happy Hong Kong" events would also boost the economy in the second quarter.

He added that the government is taking a "moderately liberal" fiscal stance this year, during the post-pandemic phase, and the authorities will continue to boost the economy.

The Travel Industry Council also said on Saturday that some 600,000 mainland tourists are expected to visit the SAR during the five-day Golden Week holiday.