The SAR government on Friday maintained its forecast for the city's economic growth prospects this year at between two and three percent, noting that uncertainty over US tariffs and the trajectory for interest rate cuts could still weigh on growth.

The unchanged forecast came after official data released by the Census and Statistics Department showed that Hong Kong's gross domestic product expanded 3.1 percent year on year in the second quarter, putting it in line with estimates.

This follows the three percent growth recorded in the first quarter of the year.

On a seasonally adjusted quarter-to-quarter basis, the economy grew by 0.4 percent.

Acting government economist Cecilia Lam said the growth numbers were boosted by a strong performance in exports, which rose 11.5 percent year on year.

Robust inbound tourism, "vibrant" financial and business service activities, a "buoyant" local stock market and stabilisation in the residential real estate market also contributed to growth, she added.

Looking ahead, Lam expects the city's economic expansion to continue, thanks to steady growth on the mainland and across Asia as well as increases in income from local employment.

But uncertainties in global trade and inflation brought a warning from her.

"The tariff rates announced by the US earlier this month remain elevated, and its tariff policy on some commodities remains quite uncertain," she said.

"The impact of these developments on international trade flows and also the US inflation and economic activities may surface gradually later this year.

"Furthermore, the uncertainty surrounding the pace of interest rate cuts in the US will also affect local investment sentiment."

In the short term, however, Lam expects export growth to continue due to the "front-loading effect", in which exporters rush to send shipments out before any new tariffs take effect.

Local inflation should remain modest, she added, with underlying and headline consumer price inflation rates for this year forecast to be at 1.5 and 1.8 percent, respectively, making them the same as in the previous forecast.