Hong Kong GDP Growth Accelerates In Q1

(RTTNews) - Hong Kong's economy expanded at a faster pace in the first quarter, the advance estimates from the Census and Statistics Department showed on Tuesday.

Gross domestic product advanced 5.9 percent year-over-year in the first quarter, faster than the 4.0 percent growth in the fourth quarter.

The expenditure breakdown showed that private consumption expenditure grew 5.0 percent from last year, and government consumption was 2.9 percent higher. Gross domestic fixed capital formation expanded sharply by 17.7 percent, while net exports were not favorable as imports of goods and services grew faster than exports.

On a quarterly basis, GDP growth improved to 2.9 percent in the March quarter from 1.1 percent in the December quarter.

"Looking ahead, Hong Kong's economic growth outlook remains positive, underpinned by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals, and robust cross-boundary financial activities," a government spokesman said.

Despite facing persistent tensions in the Middle East that pose downside risks to the economic outlook, the government has taken targeted measures to safeguard energy supply stability and mitigate the impacts on affected sectors, the spokesperson added.