Hong Kong GDP grows 3.1pc in Q1 on exports of goods and services

Hong Kong's economy expanded by 3.1 percent in the first quarter from a year earlier, the government said on Friday, supported by increases in exports of goods and services, and a resumption of growth in overall investment expenditure.

The growth was preceded by a 2.5 percent expansion in the fourth quarter of 2024.

The city’s goods exports jumped 8.4 percent year-on-year in real terms in the first quarter of 2025, after a 1.3 percent gain in the previous quarter, supported by broadly sustained external demand and likely some front-loading of shipments in anticipation of the tariff hikes, which reached up to 245 percent in April after multiple increases.

Services exports expanded by 6.6 percent over a year earlier, powered by a continued increase in visitor arrivals, cross-boundary transport, and a buoyant local stock market.

The government said recent easing in global trade tensions had slightly reduced external headwinds and uncertainty, potentially easing some of the downward pressure on the global economic outlook.

The seasonally adjusted unemployment rate stayed low at 3.2 percent, slightly higher than the 3.1 percent in the preceding quarter, said the government. The underemployment rate remained unchanged at a low level of 1.1 percent. 

STAFF REPORTER and REUTERS