HONG KONG (Reuters) -Hong Kong’s economy grew by a faster than expected 3.1% year-on-year in the second quarter, official advance estimates showed on Thursday, expanding for a 10th straight quarter on the back of strong exports and improved domestic demand.
That compares with an average forecast of 2.7% from 13 economists polled by Reuters and with growth of 3.0% in the first quarter of 2025. GDP had expanded 2.5% in the fourth quarter of 2024.
“Looking ahead, steady economic growth in Asia, particularly in the (Chinese) mainland, combined with the government’s various measures to bolster consumption sentiment, attract investment, diversify markets, and promote economic growth, will continue to provide steadfast support for various segments of the Hong Kong economy,” a government spokesman said.
Overall investment expenditure increased alongside the economic expansion, while private consumption expenditure resumed growth, supported by stabilisation of consumption in the domestic market, the government said.
Total exports of goods saw accelerated growth, with the temporary easing of U.S. tariff measures leading to some “rush shipments”, while exports of services, growth in inbound tourism, and expansion in cross-boundary traffic also boosted growth.
However, the spokesman also warned that renewed U.S. tariff hikes would exert pressure on economic activity, adding that an uncertain pace of U.S. interest rate cuts will affect investment sentiment and the “rush shipment” effect is also expected to fade later this year.
On a seasonally adjusted quarterly basis, the economy expanded 0.4% in April-June, the data showed. That compared with a revised 1.8% in January-March and 0.9% in October-December 2024.
Private consumption expenditure increased by 1.9% in the latest quarter, compared with a decline of 1.2% in the first quarter, and a fall of 0.2% in the fourth quarter of 2024.
Goods exports rose 11.5%, compared with an 8.4% jump in the first quarter, and a 1.3% increase in the fourth quarter 2024.
Imports of goods increased 12.7%, as compared with a 7.2% surge in the first quarter and 0.4% growth in the fourth quarter 2024.
(Reporting by Hong Kong newsroom; Editing by Sharon Singleton and David Holmes)
