Hong Kong economy ‘expands solidly’, helped by strong showing of exports

Hong Kong’s economy grew by 3.1 per cent in the second quarter this year from the same period in 2024, picking up slightly from the first three months, with the government attributing it to strong export performance, partly driven by “rush shipments” ahead of renewed US tariffs, and improved domestic demand.

But the government also warned on Thursday that renewed US tariff increases would exert pressure on domestic economic activity. Observers said they expected a slowdown in the coming quarters as front-loading demand could be volatile amid tariff talks and local consumer spending was still weak.

Growth increased slightly over the revised 3 per cent year-on-year expansion in the first quarter, the Census and Statistics Department said. Ten consecutive quarters of growth have now been recorded.

A government spokesman said the economy had “expanded solidly”, supported by strong exports and improved domestic demand.

“Nevertheless, uncertainties in the external environment remain elevated. The US’ renewed tariff hikes of late will exert pressure on global trade flows as well as its domestic economic activity and inflation,” the spokesman said.

“The uncertain pace of US interest rate cuts will also affect investment sentiment. Moreover, the ‘rush shipment’ effect is expected to fade later this year.”