Hong Kong’s economy grew by 3.1 per cent in the second quarter this year from the same period in 2024, picking up slightly from the first three months, with the government attributing it to strong export performance and improved domestic demand.

Growth was slightly higher than the revised 3 per cent year-on-year expansion in the first quarter, the Census and Statistics Department said on Thursday.

The government also announced that retail sales in June rose 0.7 per cent year on year, marking the second consecutive month of growth following 14 consecutive months of contraction.

A government spokesman said the economy had “expanded solidly”, supported by strong exports and improved domestic demand.

“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 spokesman said.

“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.