Hong Kong’s economy grew by 3.1% in the first quarter compared to the same time last year, according to official data released on Friday. The government expects that strong global trade and more tourists coming in will help support continued growth.
Early estimates from the Census and Statistics Department showed that the economy grew more in the first quarter than the government’s full-year forecast of 2 to 3 percent.
Government economist Cecilia Lam Kwok-ying said that the recent reduction in global trade tensions and fewer challenges in the outside economy could help ease some of the 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.
Ongoing international trade and a rise in incoming tourism are also expected to boost Hong Kong’s service exports.
“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.”
Lam also pointed to a reduction in tit-for-tat tariffs imposed by the United States and China, calling the move “beneficial for our trade and exports.” But she also underscored uncertainties over Washington’s next steps in adjusting its trade policies.
However, a steady rise in wages and government policies to support significant events and tourism would help improve consumer spending.
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