Economic Performance - In Q2 2025, Hong Kong's real GDP grew by 3.1% year-on-year, matching the previous quarter's growth of 3.0% [1] - Seasonally adjusted, the real GDP increased by 0.4% quarter-on-quarter, down from 1.8% in the previous quarter [1] External Trade - Overall merchandise exports accelerated to a growth of 11.5% year-on-year in Q2 2025, following an 8.4% increase in the previous quarter [2] - Exports to mainland China continued to show double-digit growth, while exports to ASEAN markets also increased [2] - Service output expanded by 7.5% year-on-year in Q2 2025, supported by strong tourism and cross-border transport [2] Internal Economy - Private consumption expenditure rose by 1.9% year-on-year in Q2 2025, recovering from a decline of 1.2% in the previous quarter [3] - Government consumption expenditure increased by 2.5% year-on-year in Q2 2025 [3] - Overall investment expenditure rose by 2.8% year-on-year, with significant increases in machinery and equipment spending [3] Labor Market - The unemployment rate increased to 3.5% in Q2 2025, up from 3.2% in the previous quarter [4] - The median monthly employment income for full-time employees grew by 6.3% year-on-year [4] Asset Market - The Hong Kong stock market maintained an upward trend, with the Hang Seng Index rising by 4.1% to 24,072 points by the end of Q2 2025 [5] - The residential property market showed signs of stabilization, with overall residential prices increasing by 1% [5] - The number of residential property transactions registered a significant rebound of 37% compared to the previous quarter [5] Inflation and Price Outlook - The basic composite consumer price index rose by 1.1% year-on-year in Q2 2025, slightly down from 1.2% in the previous quarter [6] - The overall inflation rate is projected to remain mild, with forecasts for basic and overall consumer price inflation at 1.5% and 1.8%, respectively [8] Future Economic Forecast - The economic outlook for the remainder of 2025 remains positive, with real GDP growth projected between 2% and 3% [7] - Factors such as ongoing employment income growth and a recovering property market are expected to support economic performance [7] - The uncertainty surrounding U.S. tariffs and interest rate changes may impact local investment sentiment [7]

Economic Overview - The overall local GDP in Hong Kong increased by 3.1% in Q1 2025 compared to the same period last year, up from a 2.5% increase in Q4 2024 [1] Service Sector Analysis - The total value added by all service activities rose by 2.6% in Q1 2025 year-on-year, compared to a 1.7% increase in Q4 2024 [1] - The value added by import and export trade, wholesale and retail industries increased by 4.2% in Q1 2025 year-on-year, contrasting with a 0.2% decline in Q4 2024 [1] - The accommodation and food services sector saw a decrease of 1.8% in value added in Q1 2025 year-on-year, following a 2.6% increase in Q4 2024 [1] - The transportation, warehousing, postal, and courier services sector's value added rose by 2.9% in Q1 2025 year-on-year, down from a 6.8% increase in Q4 2024 [1] - The information and communications sector's value added increased by 1.3% in Q1 2025 year-on-year, slightly down from a 1.5% increase in Q4 2024 [1] - The financial and insurance sector's value added rose by 4.4% in Q1 2025 year-on-year, compared to a 1.9% increase in Q4 2024 [1] Other Industries - The real estate, professional, and business services sector recorded a 0.3% decline in value added in Q1 2025 year-on-year, following a 1.7% increase in Q4 2024 [2] - The public administration, social, and personal services sector's value added increased by 1.7% in Q1 2025 year-on-year, down from a 3.0% increase in Q4 2024 [2] - The local manufacturing sector's value added rose by 0.7% in Q1 2025 year-on-year, compared to a 1.0% increase in Q4 2024 [2] - The electricity, gas, water supply, and waste management sector experienced a 1.4% decline in value added in Q1 2025 year-on-year, following a 3.0% increase in Q4 2024 [2] Construction Industry - The construction sector's value added declined by 1.9% in Q1 2025 year-on-year, following a 4.7% decrease in Q4 2024 [3]

Economic Performance - Hong Kong's real GDP grew by 3.1% year-on-year in Q1 2025, an increase from 2.5% in the previous quarter [1][4] - Seasonally adjusted, the real GDP rose by 1.9% quarter-on-quarter, revised from an earlier estimate of 2.0% [4] Trade and Exports - Overall merchandise exports increased significantly by 8.4% year-on-year in Q1 2025, up from a 1.3% increase in the previous quarter [6] - Service output also expanded by 6.6% year-on-year in Q1 2025, following a 6.5% increase in the previous quarter [6] Investment and Consumption - Total investment expenditure showed a moderate growth of 2.8% year-on-year in Q1 2025, recovering from a slight decline of 0.7% in the previous quarter [7] - Private consumption expenditure continued to decline slightly by 1.1% year-on-year, reflecting ongoing changes in consumer behavior [7] Labor Market - The unemployment rate remained low at 3.2% in Q1 2025, slightly up from 3.1% in the previous quarter, while the underemployment rate held steady at 1.1% [8] Asset Market - The Hong Kong stock market experienced volatility, with the Hang Seng Index reaching a three-year high of 24,771 points in mid-March 2025, before closing at 23,120 points at the end of Q1, a 15.3% increase from the end of 2024 [10] - Residential property prices declined by 2% in Q1 2025, while overall residential rents increased slightly by 0.4% [11] Inflation - The basic composite consumer price index rose by 1.2% year-on-year in Q1 2025, consistent with the previous quarter [12] - The overall composite consumer price index increased by 1.6% year-on-year, up from 1.4% in the previous quarter [12] Economic Forecast - The forecast for Hong Kong's real GDP growth for 2025 remains at 2% to 3%, consistent with earlier projections [15][17] - The inflation rate predictions for basic and overall consumer prices are maintained at 1.5% and 1.8%, respectively [15][17]

Core Viewpoint - The Hong Kong Special Administrative Region government released the "2025 Q1 Economic Report" and revised local GDP figures, indicating a positive growth trend in the economy [1] Economic Performance - The real local GDP of Hong Kong grew by 3.1% year-on-year in Q1 2025, compared to a growth of 2.5% in the previous quarter [1] - Seasonally adjusted, the real local GDP increased by 1.9% quarter-on-quarter in Q1 2025, up from a 0.9% increase in the previous quarter [1]

Group 1 - The core viewpoint of the article is that the Hong Kong SAR government has released preliminary estimates indicating a 3.1% year-on-year increase in local GDP for the first quarter of 2025, compared to a 2.5% increase in the fourth quarter of 2024 [1]

Core Viewpoint - The Hong Kong economy showed robust expansion in Q1 2025, with a real GDP growth of 3.1% year-on-year, accelerating from 2.5% in Q4 2024 [1][2] GDP Components Analysis - Private consumption expenditure decreased by 1.2% year-on-year in Q1 2025, compared to a decline of 0.2% in Q4 2024 [1] - Government consumption expenditure recorded a real increase of 1.2% year-on-year in Q1 2025, down from 2.1% in Q4 2024 [1] - Gross fixed capital formation rose by 2.8% year-on-year in Q1 2025, contrasting with a decline of 0.7% in Q4 2024 [1] - Goods exports saw a significant real increase of 8.7% year-on-year in Q1 2025, up from 1.3% in Q4 2024 [1] - Goods imports increased by 7.4% year-on-year in Q1 2025, compared to a 0.4% rise in Q4 2024 [1] - Service output continued to grow, with a 6.6% increase year-on-year in Q1 2025, following a 6.5% rise in Q4 2024 [1] - Service input rose by 6.2% year-on-year in Q1 2025, down from 8.3% in Q4 2024 [1] Seasonal Adjustment and Economic Outlook - Seasonally adjusted GDP increased by 2.0% from Q4 2024 to Q1 2025 [2] - The government noted that external demand has supported overall goods export growth, while service output has expanded due to increased visitor arrivals and cross-border economic activities [2] - Despite the positive growth, private consumption has slightly declined, reflecting ongoing changes in consumer behavior [2] - Future outlook indicates significant downside risks to the global economy due to heightened trade tensions, particularly from increased U.S. import tariffs, which may impact Hong Kong's short-term economic prospects [2] - Continued steady growth in the mainland economy and government measures to diversify markets are expected to support various economic activities in Hong Kong [2]

Core Viewpoint - The preliminary GDP value for Macau in the first quarter of 2025 is reported at 99.78 billion MOP, reflecting a year-on-year real decrease of 1.3% and indicating an economic scale equivalent to 85.2% of the same period in 2019 [1] Economic Performance - The preliminary GDP figure for the first quarter of 2025 is 99.78 billion MOP [1] - There is a year-on-year real decrease of 1.3% in GDP [1] - The current economic scale is equivalent to 85.2% of the GDP in the same quarter of 2019 [1] Influencing Factors - The decrease in GDP is attributed to a high base from the previous year and changes in consumer spending patterns among travelers [1]

Core Viewpoint - The Hong Kong government anticipates a robust performance in the first quarter GDP, driven by an increase in tourist arrivals and positive trends in retail and consumption sectors [1] Group 1: Economic Indicators - The number of visitors to Hong Kong increased by 9% in the first quarter, reaching 12.2 million [1] - Retail sales in Hong Kong showed a month-on-month increase in January and February after seasonal adjustments [1] - The year-on-year growth rate of merchandise export value has accelerated in the first quarter [1] Group 2: Impact on Sectors - The rise in tourist arrivals is expected to benefit the service industry significantly [1] - Increased tourism is also anticipated to boost the retail and dining sectors [1]