HONG KONG :Hong Kong’s economy grew in the first quarter by 3.1 per cent from a year earlier, official advance estimates showed on Friday, expanding for a ninth quarter.
That was a faster rate than the mean forecast of 2.1 per cent year-on-year growth by six economists in a Reuters poll. Hong Kong reported a revised 2.5 per cent economic growth in the fourth quarter of 2024, 1.9 per cent growth in the third quarter, 3.0 per cent growth in the second quarter and 2.8 per cent growth in the first quarter.
External demand supported goods exports while growth in visitor arrivals boosted services, the government said of the first quarter performance.
Overall investment expenditure also rose, but private consumption spending declined amid changes in residents’ consumption patterns as they tightened their belts and took advantage of the Hong Kong dollar’s strength to shop across the border on the mainland.
“Looking ahead, as global trade tensions escalated abruptly in early April due to the significant increases in import tariffs imposed by the US, the downside risks surrounding the global economy have heightened visibly,” a government spokesman said.
“The extremely high levels of trade policy uncertainty will dampen international trade flows and investment sentiment, which in turn overshadow the near-term outlook for the Hong Kong economy,” the spokesman said, adding mainland economy growth, among others, will lend support to the economy.
On a seasonally adjusted quarterly basis, the economy expanded 2.0 per cent in January-March, the data showed. That compared to a 0.9 per cent in October-December, 0.1 per cent decline in July-September, 0.3 per cent growth in April-June and 1.3 per cent rise in January-March.
Private consumption expenditure decreased by 1.2 per cent in the first quarter, compared to a decline of 0.2 per cent in the fourth quarter, a drop of 1.3 per cent in the third quarter, a 1.9 per cent decline in the second quarter and a 0.9 per cent growth in the first quarter.
Goods exports rose 8.7 per cent, compared to a 1.3 per cent increase in the fourth quarter, a 3.9 per cent rise in the third quarter, and 7.4 per cent and 6.7 per cent growth in the second and first quarter respectively.
Imports of goods increased 7.4 per cent, as compared to 0.4 per cent increase in the fourth quarter, 2.8 per cent growth in the third quarter, a 3.4 per cent rise in the second quarter and a 3.3 per cent increase in January-March period.
