Hong Kong Q2 GDP expands 3.1% y/y, full-year growth forecast maintained

CNA

9 hours ago

HONG KONG :Hong Kong's economy expanded by 3.1 per cent 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 per cent and 3 per cent.
Economic growth in the first quarter of 2025 was 3.0 per cent year-on-year, an improvement from 2.5 per cent recorded during the same period last year, the government said.
On a seasonally adjusted quarterly basis, GDP expanded 0.4 per cent in April-June, the data showed. That compared with a revised 1.8 per cent in January-March and 0.9 per cent 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 per cent and 1.8 per cent 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.