HONG KONG (Reuters) -Hong Kong’s economy grew in the first quarter by 3.1% from a year earlier, official advance estimates showed on Friday, expanding for a ninth quarter.
That was a faster rate than the mean forecast of 2.1% year-on-year growth by six economists in a Reuters poll. Hong Kong reported a revised 2.5% economic growth in the fourth quarter of 2024, 1.9% growth in the third quarter, 3.0% growth in the second quarter and 2.8% growth in the first quarter.
External demand supported goods exports while growth in visitor arrivals boosted services, the government said of the first quarter performance.
Overall investment expenditure also rose, but private consumption spending declined amid changes in residents’ consumption patterns as they tightened their belts and took advantage of the Hong Kong dollar’s strength to shop across the border on the mainland.
“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,” a government spokesman said.
“The extremely high levels of trade policy uncertainty will dampen international trade flows and investment sentiment, which in turn overshadow the near-term outlook for the Hong Kong economy,” the spokesman said, adding mainland economy growth, among others, will lend support to the economy.
On a seasonally adjusted quarterly basis, the economy expanded 2.0% in January-March, the data showed. That compared to a 0.9% in October-December, 0.1% decline in July-September, 0.3% growth in April-June and 1.3% rise in January-March.
Private consumption expenditure decreased by 1.2% in the first quarter, compared to a decline of 0.2% in the fourth quarter, a drop of 1.3% in the third quarter, a 1.9% decline in the second quarter and a 0.9% growth in the first quarter.
Goods exports rose 8.7%, compared to a 1.3% increase in the fourth quarter, a 3.9% rise in the third quarter, and 7.4% and 6.7% growth in the second and first quarter respectively.
Imports of goods increased 7.4%, as compared to 0.4% increase in the fourth quarter, 2.8% growth in the third quarter, a 3.4% rise in the second quarter and a 3.3% increase in January-March period.
(Reporting by Hong Kong newsroom; Editing by Aidan Lewis and Toby Chopra)
