Hong Kong’s economy in the first quarter increased 3.1% year-on-year, picking up from the 2.5% growth in the preceding quarter.
The Census & Statistics Department announced the figures today as it released its advance estimates on gross domestic product (GDP) for the first quarter.
According to the estimates, private consumption expenditure decreased 1.2% in real terms in the first quarter.
Government consumption expenditure grew 1.2% year-on-year.
Gross domestic fixed capital formation rose 2.8% year-on-year.
Over the same period, total goods exports grew 8.7%, much faster than the increase of 1.3% in the fourth quarter of 2024. Imports of goods grew by 7.4%, higher than the increase of 0.4% in the preceding quarter.
Compared with a year earlier, exports of services rose 6.6% in the first quarter, while imports of services went up 6.2%.
Commenting on the figures, the Government said the Hong Kong economy expanded solidly in the first quarter.
During the year, total exports of goods posted accelerated growth amid sustained external demand. 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.
However, it noted that private consumption expenditure registered a small decline, reflecting the lingering impact of changes in residents’ consumption patterns.
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.
Nonetheless, the sustained steady growth of the Mainland economy, together with the Government’s various measures to promote economic growth and expand into more diversified markets, will lend support to various economic activities in Hong Kong, it added.
