Hong Kong GDP Growth Confirmed at 3.1% in Q1

Hong Kong’s economy expanded by 3.1% year-on-year in Q1 2025, in line with preliminary estimates and accelerating from an upwardly revised 2.5% growth in Q4 2024.

The pickup was largely driven by strong external demand, particularly in the exports of goods and services, as businesses front-loaded shipments in anticipation of imminent US tariff hikes.

External trade showed notable strength, with goods exports surging by 8.4% (up from 1.3% in Q4) and imports rising by 7.1% (vs 0.4% previously).

Gross domestic fixed capital formation also returned to positive territory, growing by 2.8% after contracting by 0.7% in the prior quarter.

However, private consumption continued to decline, falling by 1.1% (vs -0.2%), reflecting subdued domestic sentiment.

Government spending also softened, rising by 1.2% compared to 2.1% in Q4.

On a seasonally adjusted quarterly basis, GDP grew by 1.9%, the fastest pace in two years and an acceleration from the previous quarter’s upwardly revised 0.9% gain.