Hong Kong GDP expands 3.1%, faster than forecast
A general view of skyline buildings, in Hong Kong, China, on Jul 13, 2021. (Photo: REUTERS/Tyrone Siu)
HONG KONG: Hong Kong's economy grew by a faster than expected 3.1 per cent year-on-year in the second quarter, official advance estimates showed on Thursday (Jul 31), expanding for a 10th straight quarter on the back of strong exports and improved domestic demand.
That compares with an average forecast of 2.7 per cent from 13 economists polled by Reuters and with growth of 3.0 per cent in the first quarter of 2025. GDP had expanded 2.5 per cent 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," a government spokesman said.
Overall investment expenditure increased alongside the economic expansion, while private consumption expenditure resumed growth, supported by stabilisation of consumption in the domestic market, the government said.
Total exports of goods saw accelerated growth, with the temporary easing of US tariff measures leading to some "rush shipments", while exports of services, growth in inbound tourism, and expansion in cross-boundary traffic also boosted growth.
However, the spokesman also warned that renewed US tariff hikes would exert pressure on economic activity, adding that an uncertain pace of US interest rate cuts will affect investment sentiment and the "rush shipment" effect is also expected to fade later this year.
On a seasonally adjusted quarterly basis, the economy expanded 0.4 per cent in April-June, the data showed. That compared with a revised 1.8 per cent in January-March and 0.9 per cent in October-December 2024.
Private consumption expenditure increased by 1.9 per cent in the latest quarter, compared with a decline of 1.2 per cent in the first quarter, and a fall of 0.2 per cent in the fourth quarter of 2024.
Goods exports rose 11.5 per cent, compared with an 8.4 per cent jump in the first quarter, and a 1.3 per cent increase in the fourth quarter 2024.
Imports of goods increased 12.7 per cent, as compared with a 7.2 per cent surge in the first quarter and 0.4 per cent growth in the fourth quarter 2024.
