A pedestrian walks past a residential development in Hong Kong, China. REUTERS/Lam Yik/File Photo
HONG KONG: Hong Kong's economy expanded by 3.1% in the first quarter from a year earlier, the government said on Friday, supported by an increase in exports of goods and services, and a resumption of growth in overall investment expenditure.
The figure was in line with the official advance estimates released earlier this month.
Sustained international trade flows, coupled with improving inbound tourism, are expected to benefit Hong Kong's exports of services, the government said.
"On the inflation outlook, overall inflation should remain modest in the near term as pressures from domestic costs and external prices should stay broadly in check," acting government economist Cecilia Lam said in a statement.
"The change in consumption patterns of residents and visitors would still pose constraints on driving consumption in the domestic market," Lam said, although the promotion of mega events and tourism would boost sentiment around consumption.
On a seasonally adjusted quarterly basis, the economy grew 1.9% in the three months to March 31.
The government maintained its real GDP growth forecast for 2025 at 2% to 3%. It kept the forecast for the underlying and headline consumer price inflation rates at 1.5% and 1.8% respectively.
Hong Kong reported 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. - Reuters
