Hong Kong’s economy grows by 3.1% in first quarter

Hong Kong’s economy grew by 3.1 per cent in the first quarter against a year ago, official data released on Friday showed, with the government predicting sustained global trade flows and improving inbound tourism to bolster growth.

Advance estimates released by the Census and Statistics Department showed gross domestic product growth in the first quarter was higher than the government’s full-year forecast of between 2 and 3 per cent.

Government economist Cecilia Lam Kwok-ying said the recent easing of global trade tensions and reduced headwinds in the external environment could relieve some downward pressure on the global economic outlook.

“The sustained steady growth of the mainland economy amid more proactive fiscal policies and the moderately accommodative monetary policies should bode well for the performance of merchandise exports in Asia, including Hong Kong,” Lam said.

“Sustained international trade flows, coupled with improving inbound tourism, are also expected to benefit Hong Kong’s exports of services.

“However, uncertainties in the trade policies of the United States persist, and its monetary policy trajectory going forward is still complicated. These may affect global financial conditions and investment sentiment.”