Tourism and exports boost HK’s growth

ECONOMIC DATA

- ALAN WONG

Hong Kong’s economy expanded at the fastest pace in more than a year, benefiting from a recovery in tourism and an export bump before Donald Trump's drastic tariff hikes.

Gross domestic product increased 3.1% from the same period last year, according to advance government data released Friday. That was the biggest expansion since the last quarter of 2023 and exceeded the median estimate of 2.1% by economists.

The upbeat result, fuelled in part by rising tourism, may vindicate efforts by policymakers to make the city an attractive destination again after its image suffered from strict pandemic measures and a crackdown on freedoms.

But the pace is unlikely to last as exports, another key growth driver, likely took a hit from April, when Trump escalated his tariff war against China.