Hong Kong economy grows by stronger-than-expected 3.1% in first quarter
Downside risks surrounding global economy have heightened visibly, government spokesman warns
Hong Kong’s economy grew by a stronger-than-expected 3.1 per cent year on year in the first quarter, although economists have warned that the effects of the US tariff war have yet to be reflected.
Estimates released by the Census and Statistics Department on Friday showed that economic expansion picked up in the first three months compared with the 2.5 per cent growth in the preceding quarter and outperformed the previous market forecast of around 2.1 per cent, thanks to a surge in exports.
“Exports of services continued to expand, supported by the increase in visitor arrivals and other cross-boundary economic activities. Overall investment expenditure grew in tandem with the economic expansion,” a government spokesman said.
“However, private consumption expenditure registered a small decline, reflecting the lingering impact of changes in residents’ consumption patterns.”
Other government data released on Friday showed retail sales fell for the 13th month in a row in March.
The department said total exports of goods increased by 8.7 per cent year on year, much faster than the 1.3 per cent increase in the fourth quarter of 2024. Imports of goods also grew by 7.4 per cent, compared with a 0.4 per cent increase in the previous quarter.