The government said it's keeping its GDP forecast for the year unchanged at the 2 to 3 percent range, after the economy grew 3.1 percent in the first quarter.

The full-year forecast was made by Financial Secretary Paul Chan in his budget in late February, before the worsening of the US-China tariff war.

Acting Government Economist Cecilia Lam said on Friday in the first three months of the year, the Hong Kong economy was boosted by a significant rise in the exports of goods and services, as well as moderate growth in investment expenditure.

Going forward, Lam said the local and global economies should be supported by the recent easing of global trade frictions, particularly between China and the United States.

An improving mainland economy should also support Hong Kong's exports, she told a press conference

"The 90-day suspension of US tariffs gives us a window, especially for exporters, for exports to reach the overseas markets.

"Of course this will relieve the downward economic pressure on the global economic outlook."

But Lam also warned of uncertainty and complications as far as Washington's trade and monetary policies are concerned. She noted, for example, that the tariff suspension between the US and many economies would lapse in the summer, and it's uncertain what would happen next.

She said the SAR government is sticking to its GDP forecast for the year because it remains confident with local economic developments, having considered economic and trade data in March and April.

Lam added that local retail sales have improved in recent months, supported in part by strong inbound tourism figures.