Hong Kong Q1 GDP Grows 3.1%, Surpassing Expectations

Hong Kong's economy grew by 3.1% year-on-year in the first quarter of 2025, outpacing economists' forecasts and marking its strongest growth since late 2023. The expansion was driven by robust external demand, particularly a surge in goods exports and a recovery in tourism, while household consumption declined and government spending slowed. The growth exceeded the 2.1% average forecast from economists and was also higher than the previous quarter's 2.4% gain. This marks the ninth consecutive quarter of economic growth for Hong Kong, with the latest figures reflecting a pronounced acceleration in quarterly performance. The positive economic surprise comes amid global trade shifts and ahead of potential tariff changes, highlighting Hong Kong's resilience. However, some areas such as household consumption and government spending saw weaker performance compared to previous periods.