Hong Kong’s economy grew at a stronger-than-anticipated 3.1% year-on-year in the second quarter, according to official preliminary estimates released on Thursday.

This marks the 10^th consecutive quarter of expansion, driven by robust exports and stronger domestic demand.

The growth exceeded the 2.7% average forecast from a Reuters news agency poll of 13 economists and slightly improved on the 3.0% growth recorded in the first quarter of 2025. In comparison, GDP rose by 2.5% in the fourth quarter of 2024.

“Looking ahead, steady economic growth in Asia, particularly in the (Chinese) mainland, combined with the government's various measures to bolster consumption sentiment, attract investment, diversify markets, and promote economic growth, will continue to provide steadfast support for various segments of the Hong Kong economy,” according to a government spokesperson.

The government reported that overall investment spending rose in line with the broader economic expansion, while private consumption rebounded, supported by a stabilising domestic market.

Exports of goods grew at a faster pace, partly due to temporary relief from US tariff measures that triggered a wave of “rush shipments.”

In addition, growth was driven by increased service exports, a rise in inbound tourism, and the expansion of cross-boundary traffic.

However, the government spokesperson cautioned that renewed US tariff hikes could weigh on economic activity, and uncertainty around the timing of US interest rate cuts may dampen investment sentiment.

The temporary boost from “rush shipments” is also expected to diminish later in the year.

Furthermore, seasonally adjusted data showed the economy grew 0.4% in the April–June period, down from a revised 1.8% in Q1 and 0.9% in Q4 2024.

Private consumption expenditure grew by 1.9% in the latest quarter, rebounding from a 1.2% decline in the first quarter and a 0.2% drop in the fourth quarter of last year.

Exports of goods surged 11.5%, accelerating from an 8.4% rise in the previous quarter and a 1.3% increase in Q4 2024.

Whilst imports of goods climbed 12.7% in the latest quarter, up from a 7.2% increase in the first quarter and a modest 0.4% rise in Q4 last year.