The Hong Kong government has revised its real GDP growth forecast for the year, citing a weaker-than-anticipated performance in the first quarter. The initial growth projection has been adjusted downwards to reflect the impact of ongoing global economic uncertainties and persistent trade tensions.

According to government economists, the downward revision is primarily attributed to a slowdown in external demand and subdued domestic consumption. The external environment remains challenging, with geopolitical risks and inflationary pressures weighing on global trade and investment flows.

Specific factors contributing to the revised forecast include:

• Weaker export performance due to reduced global demand.
• Slower growth in retail sales, reflecting cautious consumer spending.
• Continued uncertainty surrounding the global economic outlook.

The government stated that it will continue to monitor the economic situation closely and implement appropriate measures to support businesses and households. They also emphasized the importance of maintaining Hong Kong’s competitiveness and attractiveness as a global financial center.

Despite the downward revision, the government remains optimistic about the long-term prospects for the Hong Kong economy, highlighting the city’s strong fundamentals and its role as a gateway to mainland China.