Hong Kong's economy grew by 3.1% year-on-year in the first quarter, the government announced on Friday, driven by a rise in exports of goods and services and renewed growth in total investment spending.
This growth rate matched the official advance estimates published earlier this month.
A government spokesperson said at the time: “Looking ahead, as global trade tensions escalated abruptly in early April due to the significant increases in import tariffs imposed by the US, the downside risks surrounding the global economy have heightened visibly.
“The extremely high levels of trade policy uncertainty will dampen international trade flows and investment sentiment, which in turn overshadow the near-term outlook for the Hong Kong economy,” the spokesman added, going on to say that mainland economic growth, amongst other factors, will boost the economy.
Indeed, the government also noted that steady international trade and a recovery in inbound tourism are likely to boost Hong Kong’s service exports.
“On the inflation outlook, overall inflation should remain modest in the near term as pressures from domestic costs and external prices should stay broadly in check,” according to a statement by acting government economist Cecilia Lam.
“The change in consumption patterns of residents and visitors would still pose constraints on driving consumption in the domestic market,” Lam went on to add, while the promotion of mega events and tourism is expected to boost consumer confidence.
On a seasonally adjusted quarterly basis, the economy expanded by 1.9% during the three months ending 31st March, Reuters news agency reports.
The government upheld its real GDP growth forecast for 2025, projecting it to be between 2% and 3%.
It also maintained its estimates for underlying and headline consumer price inflation at 1.5% and 1.8%, respectively.
Furthermore, Hong Kong’s economy grew by 2.5% in the fourth quarter of 2024, following increases of 1.9% in the third quarter, 3.0% in the second quarter, and 2.8% in the first quarter.