HONG KONG: Hong Kong's economy expanded by 3.1% in the second quarter from the same period a year earlier, supported by a surge in rush shipments following the temporary easing of U.S. tariff measures, the government said on Friday.
The latest GDP figure was in line with the official estimate released in late July, marking the 10th consecutive quarter of expansion on the back of robust exports and strengthening domestic demand.
Export performance was further boosted by a rebound in inbound tourism, increased cross-boundary traffic and a buoyant local stock market, all contributing to strong growth in services exports.
Hong Kong's economy has been growing steadily in the past 2.5 years and the government said it was maintaining its full-year growth forecast of between 2% and 3%.
Economic growth in the first quarter of 2025 was 3.0% year-on-year, an improvement from 2.5% recorded during the same period last year, the government said.
On a seasonally adjusted quarterly basis, GDP 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.
"Looking ahead, the Hong Kong economy is expected to maintain growth for the rest of 2025," acting government economist Cecilia Lam said in a statement. She added that measures to boost consumption and attract investment would support growth.
"Yet, the tariff rates announced by the U.S. in early August stay elevated, and its tariff policy on some commodities remains quite uncertain," Lam said, adding that uncertainty around the pace of U.S. interest rate cuts would affect local investment sentiment.
The forecasts for underlying and headline consumer price inflation rates for 2025 were maintained at 1.5% and 1.8% respectively.
Overall investment expenditure rose further, driven by a sharp increase in spending on machinery, equipment, and intellectual property products. Meanwhile, private consumption returned to growth after four consecutive quarters of decline, according to the government. - Reuters
