FX.co ★ Hong Kong GDP Growth Confirmed at 3.1% in Q1

Hong Kong's economy experienced a 3.1% year-on-year growth in the first quarter of 2025, matching preliminary estimates and marking an acceleration from the upwardly revised 2.5% increase in the last quarter of 2024. This growth was predominantly propelled by robust external demand, particularly in the export sector, as businesses expedited shipments in anticipation of upcoming U.S. tariff increases. External trade demonstrated significant vitality, with goods exports escalating by 8.4%, up from 1.3% in the previous quarter, and imports climbing by 7.1%, compared to a 0.4% rise earlier. Moreover, gross domestic fixed capital formation turned positive, growing by 2.8% after a 0.7% contraction in the prior quarter. However, private consumption continued its decline, dropping by 1.1% compared to a 0.2% fall previously, indicative of lukewarm domestic sentiment. Government expenditure also showed signs of easing, increasing by 1.2% as opposed to 2.1% in the previous quarter. On a seasonally adjusted quarterly basis, the GDP expanded by 1.9%, marking the fastest growth in two years and an acceleration from the prior quarter's upwardly revised 0.9% increase.