(Oct 31): Hong Kong’s economy expanded much faster than forecast in the third quarter, posting the strongest growth in nearly two years as resilient exports and recovering consumption offset trade tensions.
Gross domestic product grew 3.8% in July-September from a year earlier, according to advance estimates released Friday by the city’s Census and Statistics Department. The figure exceeded all forecasts by economists and accelerated from 3.1% in the second quarter.
“The Hong Kong economy staged a robust performance in the third quarter of 2025, driven by a continued surge in exports and sustained expansion in domestic demand,” a government spokesperson said. “Looking ahead, the Hong Kong economy should see further solid growth for the rest of 2025.”
The expansion shows the transshipment hub continued to benefit from global buyers front-loading goods to avoid US tariff hikes, with merchandise exports recording eight months of double-digit growth this year through September.
The Asian financial centre was also boosted by a tentative recovery in sentiment after retail sales snapped 14 months of consecutive declines, with receipts in September growing 5.9%, the most since 2023. Rising tourist arrivals and a boom in stock listings also aided exports of financial services.
The growth this year so far puts the city on track to reach its annual estimate of 2% to 3% expansion. With the US and China steadying ties after a leaders’ summit in South Korea this week, the city may further benefit from a more stable external environment, although the trajectory of the relations remains uncertain.
See also: China to suspend some rare earth curbs, probes on US chip firms
On a quarter-to-quarter basis, GDP increased by 0.7% in real terms in the third quarter, beating the median forecast for a 0.2% contraction.
Uploaded by Magessan Varatharaja
