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Hong Kong's GDP Grows 3.1% in Q1 2025, Driven by Exports and Investment

HK

Hong Kong's GDP Grows 3.1% in Q1 2025, Driven by Exports and Investment
HK

HK

Hong Kong's GDP Grows 3.1% in Q1 2025, Driven by Exports and Investment

2025-05-02 16:30 Last Updated At:05-03 05:48

Advance estimates on Gross Domestic Product for first quarter of 2025

The Census and Statistics Department (C&SD) released today (May 2) the advance estimates on Gross Domestic Product (GDP) for the first quarter of 2025.

According to the advance estimates, GDP increased by 3.1% in real terms in the first quarter of 2025 over a year earlier, compared with the increase of 2.5% in the fourth quarter of 2024.

Analysed by major GDP component, private consumption expenditure decreased by 1.2% in real terms in the first quarter of 2025 from a year earlier, compared with the decrease of 0.2% in the fourth quarter of 2024.

Government consumption expenditure measured in national accounts terms recorded an increase of 1.2% in real terms in the first quarter of 2025 over a year earlier, compared with the increase of 2.1% in the fourth quarter of 2024.

Gross domestic fixed capital formation increased by 2.8% in real terms in the first quarter of 2025 over a year earlier, as against the decrease of 0.7% in the fourth quarter of 2024.

Over the same period, total exports of goods measured in national accounts terms recorded an increase of 8.7% in real terms over a year earlier, much faster than the increase of 1.3% in the fourth quarter of 2024. Imports of goods measured in national accounts terms grew by 7.4% in real terms in the first quarter of 2025, compared with the increase of 0.4% in the fourth quarter of 2024.

Exports of services rose further by 6.6% in real terms in the first quarter of 2025 over a year earlier, after the increase of 6.5% in the fourth quarter of 2024. Imports of services increased by 6.2% in real terms in the first quarter of 2025, compared with the increase of 8.3% in the fourth quarter of 2024.

On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 2.0% in real terms in the first quarter of 2025 when compared with the fourth quarter of 2024.

Commentary

A Government spokesman said that the Hong Kong economy expanded solidly in the first quarter of 2025. According to the advance estimates, real GDP grew by 3.1% over a year earlier, picking up from the 2.5% growth in the preceding quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP grew visibly by 2.0%.

Analysed by major expenditure component, total exports of goods posted accelerated growth amid sustained external demand. Exports of services continued to expand, supported by the increase in visitor arrivals and other cross-boundary economic activities. Overall investment expenditure grew in tandem with the economic expansion. However, private consumption expenditure registered a small decline, reflecting the lingering impact of changes in residents' consumption patterns.

Looking ahead, as global trade tensions escalated abruptly in early April due to the significant increases in import tariffs imposed by the US, the downside risks surrounding the global economy have heightened visibly. The extremely high levels of trade policy uncertainty will dampen international trade flows and investment sentiment, which in turn overshadow the near-term outlook for the Hong Kong economy. Nonetheless, the sustained steady growth of the Mainland economy, together with the Government's various measures to promote economic growth and expand into more diversified markets, will lend support to various economic activities in Hong Kong.

The revised figures on GDP and more detailed statistics for the first quarter of 2025, as well as the revised GDP forecast for 2025, will be released on May 16, 2025.

Further information

The year-on-year percentage changes of GDP and selected major expenditure components in real terms from the first quarter of 2024 to the first quarter of 2025 are shown in Table 1.

When more data become available, the C&SD will compile revised figures on GDP. The revised figures on GDP and more detailed statistics for the first quarter of 2025 will be released at the C&SD website (www.censtatd.gov.hk/en/scode250.html) and the Gross Domestic Product by Expenditure Component report (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1030001&scode=250) on May 16, 2025.

For enquiries about statistics on GDP by expenditure component, please contact the National Income Branch (1) of the C&SD (Tel: 2582 5077 or email: gdp-e@censtatd.gov.hk).

Source: AI-generated images

Source: AI-generated images

43 persons arrested during anti-illegal worker operations

The Immigration Department (ImmD) mounted a series of territory-wide anti-illegal worker operations codenamed "Silver Wing" and "Twilight", joint operations with the Labour Department codenamed "Lightshadow" and "Rainbow", a joint operation with the Food and Environmental Hygiene Department and the Leisure and Cultural Services Department codenamed "Flabbergast", and a joint operation with the Hong Kong Police Force codenamed "Champion" from December 14 to yesterday (December 18). A total of 34 suspected illegal workers, five suspected employers and four overstayers were arrested.

During operation "Silver Wing", ImmD officers raided 10 target locations, including restaurants and a laundry factory. Seventeen suspected illegal workers and two suspected employers were arrested. The arrested suspected illegal workers comprised 10 men and seven women, aged 21 to 49. Among the arrestees, two were visitors, while the remaining 15 were imported workers who were suspected of breaching their conditions of stay by performing duties at a non-contractual workplace or by performing duties that were not stipulated in the contract. Two men, aged 33 and 50, were suspected of employing the illegal workers and were also arrested.

During a joint operation with the Labour Department codenamed "Lightshadow", investigators raided 102 target locations, and a total of three suspected illegal workers were arrested for allegedly engaging in food delivery work. The three arrested suspected illegal workers are non-ethnic Chinese males, aged 31 to 42, who were non-refoulement claimants holding recognizance forms that prohibit them from taking any employment in Hong Kong.

During other anti-illegal worker operations, ImmD officers targeted different industries and raided multiple locations including renovation flats, a leather repair store, warehouses and restaurants etc. Fourteen suspected illegal workers, three suspected employers and four overstayers were arrested. The arrested suspected illegal workers comprised six men and eight women, aged 22 to 62. Among them, a woman was suspected of using and being in possession of a forged Hong Kong identity card. Three Hong Kong female residents, aged 62 to 88, were suspected of employing the illegal workers and were also arrested.

Investigation into the suspected employers is ongoing, and the possibility of further arrests is not ruled out.

An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Moreover, after entry into the Hong Kong Special Administrative Region, the imported worker admitted on an employment condition must remain under the direct employment of the same employer for the specified job and in the specific workplace(s) as stipulated in the Standard Employment Contract and cannot be employed by other companies or subcontractors. Change of the employer, post or place of work (unless stipulated in the Standard Employment Contract) is not permitted. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties. Under the prevailing laws, it is an offence to use or possess a forged identity card or an identity card related to another person. Offenders are liable to prosecution and upon conviction face a maximum fine of $100,000 and up to 10 years' imprisonment."

The spokesman warned, "As stipulated in section 38AA of the Immigration Ordinance, an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land is prohibited from taking any employment, whether paid or unpaid, or establishing or joining any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years' imprisonment. As stipulated in section 20(1)(a) of the Immigration Ordinance, the Chief Executive may make a deportation order against an immigrant, prohibiting the immigrant from being in Hong Kong at any time thereafter if the immigrant has been found guilty in Hong Kong of an offence punishable by imprisonment for not less than two years."

The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.

According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.

Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threats and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments immediately.

For reporting illegal employment activities, please call the dedicated hotline 3861 5000, by fax at 2824 1166, email to anti_crime@immd.gov.hk, or submit "Online Reporting of Immigration Offences" form at www.immd.gov.hk.

43 persons arrested during anti-illegal worker operations  Source: HKSAR Government Press Releases

43 persons arrested during anti-illegal worker operations Source: HKSAR Government Press Releases

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