The Hong Kong Special Administrative Region’s economy has extended the pace of its expansion, supported by strong export performance and improved domestic demand.

The SAR’s gross domestic product grew 3.1 percent in the second quarter of this year, according to advance estimates released by the Census and Statistics Department on Thursday. Real GDP rose 0.4 percent on a quarter-on-quarter basis.

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Real economic growth was contributed to by the 11.5 percent hike in the exports of goods, followed by exports of services (7.5 percent), gross domestic fixed capital formation (2.9 percent), government expenditure (2.5 percent), and private consumption expenditure (1.9 percent).

“Total exports of goods saw accelerated growth, as the external demand was resilient and the temporary easing of US tariff measures led to some rushed 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,” a government spokesman said in a statement on Thursday.

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The spokesman added that the stabilization in the domestic consumption market has boosted private consumption expenditure, while overall investment expenditure increased further alongside the economic expansion.

The SAR government will announce the revised figures on GDP for the second quarter of 2025, as well as the revised GDP forecast for 2025, on Aug 15.