Hong Kong Maintains 2-3% GDP Growth Target After 3.1% Q1 Increase

Hong Kong is maintaining its economic growth target of 2 to 3 percent for 2025 despite a strong 3.1 percent GDP increase in the first quarter, which Financial Secretary Paul Chan described as an exception rather than the norm. The city's economy benefits from robust external trade, with goods exports rising 8.4 percent and service exports growing 6.6 percent, driven by increased visitor arrivals and cross-border activities. However, private consumption has declined by 1.1 percent due to changing resident spending patterns, and the unemployment rate slightly increased to 3.4 percent. The government remains cautious amid global uncertainties and US-China trade tensions, focusing on fiscal balance and structural projects like the Northern Metropolis to support long-term growth. The banking system surplus has significantly increased, and the Hang Seng Index has risen, reflecting optimism fueled by breakthroughs in China's AI sector and supportive central government measures. Authorities emphasize risk management, local employment protection, and careful policy rollout to sustain economic resilience throughout the year.