Economy grows 3.1% in Q1 amidst robust trade

However, the outlook is dampened by trade policy uncertainty.

Hong Kong’s economy rose to 3.1% year-on-year (YoY) in Q1, picking up from the 2.5% growth in the preceding quarter, the Census & Statistics Department (C&SD) reported.

According to estimates, private consumption expenditure decreased 1.2% in real terms in Q1, whilst government consumption expenditure and gross domestic fixed capital formation grew 1.2% and 2.8% YoY, respectively.

Total goods exports grew 8.7% and imports rose 7.4%, both accelerating from gains of 1.3% and 0.4% in Q4 2024. Exports of services also rose 6.6% whilst imports of services grew 6.2%.

Total exports of goods posted accelerated growth amidst sustained external demand, supported by increased visitor arrivals and other cross-boundary economic activities. 

Overall investment expenditure grew in tandem with the broader economic expansion.

“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 government said.

The government also noted that the high levels of trade policy uncertainty will dampen international trade flows and investment sentiment, overshadowing 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.