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]