Hong Kong's GDP grew 3.1% year-on-year in the first quarter

The Zhitong Finance App learned that on May 2, the Statistics Department of the Hong Kong Special Administrative Region Government released preliminary GDP estimates for the first quarter of 2025. According to preliminary estimates, the gross domestic product for the first quarter of 2025 rose by 3.1% in real terms compared to the same period last year, while the increase in the fourth quarter of 2024 was 2.5%.

According to the analysis of the major components of GDP, private consumption expenditure actually declined by 1.2% in the first quarter of 2025 compared with the same period of the previous year, while the decline in the fourth quarter of 2024 was 0.2%.

Government consumption expenditure, as defined in national accounts, recorded a real increase of 1.2% in the first quarter of 2025 compared with the same period of the previous year, compared with 2.1% in the fourth quarter of 2024.

The gross domestic fixed capital formation increased by 2.8% in real terms in the first quarter of 2025 compared with the same period of the previous year, while in the fourth quarter of 2024 it decreased by 0.7%.

In the same period, according to the definition of national economic accounts, total exports of goods recorded a real increase of 8.7% compared with the same period last year. The increase was clearly faster than 1.3% in the fourth quarter of 2024. According to the definition of national economic accounts, imports of goods actually increased by 7.4% in the first quarter of 2025, while the increase in the fourth quarter of 2024 was 0.4%.

Following a real increase of 6.5% in the fourth quarter of 2024, service exports increased further by 6.6% in the first quarter of 2025 compared to the same period last year. Service inputs rose 6.2% in real terms in the first quarter of 2025, compared to 8.3% in the fourth quarter of 2024.

The seasonally adjusted GDP increased by 2.0% in real terms in the first quarter of 2025 compared to the fourth quarter of 2024.

A government spokesman said that Hong Kong's economy expanded steadily in the first quarter of 2025. According to preliminary estimates, real GDP grew by 3.1% year on year, which is faster than the 2.5% increase in the previous quarter. After seasonally adjusted month-on-month comparison, real GDP grew by 2.0%.

According to the analysis of major expenditure components, overall export growth of goods accelerated while external demand continued. Thanks to the rise in visitors to Hong Kong and other cross-border economic activities, the export of services continues to expand. Overall investment expenses grew as the economy expanded. However, private consumption expenditure recorded a slight decline, reflecting the continuing impact of changes in public consumption patterns.

Looking ahead, as global trade frictions heated up sharply in early April due to a sharp increase in US import tariffs, downside risks to the global economy rose markedly. Extreme trade policy uncertainty will curb international trade exchanges and investment climate, thus plaguing the short-term prospects of the Hong Kong economy. Despite this, the mainland economy continues to grow steadily. Coupled with government measures to promote economic growth and develop more diversified markets, it will support various economic activities in Hong Kong.