(Jan 30): Hong Kong’s economy staged a powerful comeback last year, growing at its fastest pace since 2021 as resilient trade and a resurgence in investment defied global headwinds.
Gross domestic product (GDP) expanded 3.5% in 2025, according to advance estimates announced by the Census and Statistics Department on Friday. It marked a significant jump from 2.6% in 2024 and exceeded all but one estimate in a Bloomberg survey of economists.
The expansion adds to evidence that the city has regained its footing after a pandemic slump and social unrest dented its reputation as Asia’s premier financial centre. This may offer policymakers a reprieve from the belt-tightening measures previously used to narrow a fiscal deficit.
The momentum was evident in the final quarter, when GDP grew 3.8% year-on-year, topping the most bullish forecast. While an official spokesperson warned that external uncertainties persist into 2026, the government signalled confidence that the current strength has legs.
“Looking ahead, the Hong Kong economy is expected to maintain good momentum in 2026,” the spokesperson said in a statement, citing strong global demand for AI-enabled products and improved domestic sentiment.
Trade was the main engine of this late-year sprint. Total exports of goods jumped 15.5% in the fourth quarter, fuelled by strong demand for electronics and regional trade flows in Asia. Full-year exports rose 12%, while imports grew 18.4%.
See also: Hong Kong’s housing market rebounds with renewed city buzz
Capital investment also surged, with fixed capital formation rising 10.9% year-over-year in the final three months after growing 3.4% in the previous quarter. This sharp uptick reflects optimism as businesses open their wallets to expand capacity.
Hong Kong’s role as a transshipment hub has benefited directly from mainland China’s trade resilience. Defying US tariffs, Chinese exports made deeper inroads into markets beyond America, sending its trade surplus to a record US$1.2 trillion in 2025.
That export momentum, however, faces a reality check in 2026 as last year’s front-loaded shipments create a high base for comparison.
See also: Hong Kong home prices rose for first time in four years in 2025
Hong Kong’s economic rebound came after the Asian financial hub logged a blockbuster year of deal making. Share sales nearly quadrupled to more than US$73 billion through initial public offerings (IPOs), placements and block trades, making Hong Kong the No 1 fund-raising spot in Asia for the first time since 2013, ranking just behind the US globally.
The city’s Financial Secretary Paul Chan expressed confidence in the city’s IPO market momentum in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland, last week. He cited a pipeline of more than 300 companies seeking listings, with particular interest in AI and health tech industries.
Hong Kong’s stock market also saw a bull run in 2025, which helped with a recovery in private consumption. Home prices rose 3.25%, the first annual increase in four years, adding to signs of improved sentiment.
Uploaded by Evelyn Chan
