Hong Kong's economy grew 3.1% in the first quarter of the year, the city government said, but warned that US tariffs had heightened "risks of a downturn" in the global economy, AFP reported.

US President Donald Trump's 145% tariffs on many Chinese products came into effect last month.

Beijing responded with new 125% tariffs on US imports.

Hong Kong, a special administrative region of China with its own trade policy, did not follow Beijing's example and did not impose retaliatory tariffs.

Officials said the city's economy had seen "stable growth" this year, supported by growth in mainland China and an increase in exports and tourist arrivals in the first quarter.

"According to preliminary estimates, real GDP grew by 3.1% compared to the same period last year, accelerating from 2.5% growth in the previous quarter," a government spokesperson said.

The growth is higher than the 2.1% expected by economists polled by Bloomberg.

However, officials warned that with the sharp rise in global tensions, "risks to the global economy have increased significantly."

"Extremely high uncertainty in trade policy will slow down international trade flows and the investment climate, which in turn will cast a shadow over the short-term outlook for Hong Kong's economy," a spokesperson said.

However, economic activity in the city will be supported by local government measures to stimulate growth and "sustained stable growth in the mainland (China) economy," they added.

Preliminary data showed an 8.7% increase in goods exports, which the authorities attributed to "sustained external demand."

Private consumption fell 1.2% year-on-year, reflecting the continuing impact of changes in residents' consumption patterns.

The authorities have set a growth target of 2-3% for the city this year.

But Paul Chan, the city's finance chief, called for vigilance in April given the "tense external environment."

"The aggressive actions and unilateralism of the US will continue to weigh on the global economic outlook," he wrote. |BGNES