Hong Kong's economy in the second quarter increased 3.1% year-on-year, picking up from the 3% growth in the preceding quarter.

The Census & Statistics Department announced the figures today as it released its advance estimates on gross domestic product for the second quarter.

According to the estimates, private consumption expenditure increased 1.9% in real terms in the second quarter.

Government consumption expenditure grew 2.5% year-on-year.

Gross domestic fixed capital formation rose 2.9% year-on-year.

Over the same period, exports of goods increased 11.5%, accelerated further from the growth of 8.4% in the first quarter. Imports of goods grew 12.7%, higher than the increase of 7.2% in the first quarter.

Compared with a year earlier, exports of services rose 7.5% in the second quarter, while imports of services went up 7%.

Commenting on the figures, the Government said that during the second quarter, total exports of goods saw accelerated growth, as the external demand was resilient and the temporary easing of US tariff measures led to some rush shipments.

Exports of services continued to expand notably, thanks to strong growth in inbound tourism, further expansion in cross-boundary traffic, and vibrant financial and related business service activities amid the buoyant local stock market.

Domestically, private consumption expenditure resumed moderate growth after four consecutive quarters of decline, as supported by the stabilisation in the domestic consumption market. Meanwhile, overall investment expenditure increased further alongside the economic expansion.

Hong Kong's economy exhibited remarkable resilience in the first half of 2025.

Looking ahead, steady economic growth in Asia, particularly in the Mainland, combined with the Government's various measures to bolster consumption sentiment, attract investment, diversify markets, and promote economic growth, will continue to provide steadfast support for various segments of the Hong Kong economy.

Nevertheless, uncertainties in the external environment remain elevated. The US' renewed tariff hikes of late will exert pressure on global trade flows as well as its domestic economic activity and inflation. The uncertain pace of US interest rate cuts will also affect investment sentiment.

Moreover, the “rush shipment” effect is expected to fade later this year.

Hong Kong's economic performance going forward will, to a certain extent, depend on how these factors evolve, the Government added.