Economy up 3.1% in Q1 2025

It was driven by exports and investment.

Hong Kong’s economy grew 3.1% year-on-year (YoY) in the first quarter of 2025, up from 2.5% in the previous quarter, according to Acting Government Economist Cecilia Lam.

Quarter-on-quarter, real GDP rose 1.9%, mainly due to stronger exports and a rebound in investment.

Goods exports increased 8.4% YoY, whilst services exports rose 6.6%, supported by higher visitor arrivals and cross-border financial activity.

Additionally, investment expenditure grew 2.8%, driven by machinery purchases and a surge in property transaction costs.

Private consumption fell 1.1%, reflecting shifts in spending habits. Despite this, the government has kept its full-year GDP growth forecast unchanged at 2–3%.

Lam said easing global trade tensions and steady growth in Mainland China could support further export gains. However, she warned that U.S. trade and monetary policy uncertainties may weigh on global sentiment.

Market caution was evident towards the end of March, with residential property transactions dropping 19% from the previous quarter, she noted.

On inflation, Lam forecasted that price pressures would remain moderate in the near term. The government’s inflation projections for 2025 stand at 1.5% for underlying inflation and 1.8% for headline consumer price inflation.