Hong Kong's GDP grew by 3.1% year-on-year in the first quarter.

On May 2nd, the Census and Statistics Department of the Hong Kong Special Administrative Region Government released the preliminary estimate of the Gross Domestic Product (GDP) for the first quarter of 2025. According to the preliminary estimate, the GDP for the first quarter of 2025 increased by 3.1% compared to the same period in the previous year, while the increase for the fourth quarter of 2024 was 2.5%. Analyzing the major components of GDP, private consumption expenditure decreased by 1.2% in the first quarter of 2025 compared to the same period in the previous year, while the decrease in the fourth quarter of 2024 was 0.2%. Government consumption expenditure, calculated according to national economic accounting definitions, recorded a 1.2% increase in real terms in the first quarter of 2025 compared to the previous year, while the increase in the fourth quarter of 2024 was 2.1%. Total fixed capital formation in the local economy increased by 2.8% in real terms in the first quarter of 2025 compared to the previous year, while it decreased by 0.7% in the fourth quarter of 2024. In the same period, according to national economic accounting definitions, total goods exports increased by 8.7% in real terms compared to the previous year, a significant increase compared to the 1.3% in the fourth quarter of 2024. Goods imports increased by 7.4% in real terms in the first quarter of 2025, while the increase in the fourth quarter of 2024 was 0.4%. Service exports increased by 6.6% in the first quarter of 2025 compared to the previous year, following a 6.5% increase in the fourth quarter of 2024. Service imports increased by 6.2% in the first quarter of 2025, while the increase in the fourth quarter of 2024 was 8.3%. The seasonally adjusted GDP, comparing contiguous quarters, increased by 2.0% in the first quarter of 2025 compared to the fourth quarter of 2024. A government spokesperson stated that the Hong Kong economy experienced solid expansion in the first quarter of 2025. According to the preliminary estimate, the real GDP grew by 3.1% year-on-year, faster than the 2.5% growth in the previous quarter. After seasonally adjusting for quarter-on-quarter comparison, the real GDP increased significantly by 2.0%. Analyzing the major components of expenditure, overall growth in goods exports accelerated due to continued external demand. Service exports continued to expand, benefiting from an increase in visitors to Hong Kong and other cross-border economic activities. Overall investment expenditure increased with economic expansion. However, private consumption expenditure slightly decreased, reflecting the ongoing impact of changes in consumer spending patterns. Looking ahead, as global trade tensions escalated in early April with the United States significantly increasing import tariffs, the downward risks to the global economy have significantly increased. The high level of trade policy uncertainty will inhibit international trade and investment, affecting the short-term prospects of the Hong Kong economy. Nevertheless, with steady growth in mainland Chinas economy and various government measures promoting economic diversification by CKH HOLDINGS, Hong Kong's different economic activities are expected to receive support.