FX.co ★ Hong Kong Economy Grows at Fastest Pace in 2 Years

Hong Kong's economy experienced a 3.8% year-on-year expansion in the fourth quarter of 2025, an improvement on the revised 3.7% growth observed in the third quarter, according to preliminary figures. This rate of growth is the highest since the fourth quarter of 2023, driven by increased private consumption (up to 2.5% from 2.4% in Q3) and a notable rise in gross fixed capital formation (10.9% compared to 3.4% previously). However, government expenditure decelerated, recording a 1.4% increase compared to 2% earlier. The net trade balance negatively impacted the GDP, with exports growing by 15.5% but being outstripped by a significant 18.4% rise in imports (up from 11.7%). On a seasonally adjusted basis, the GDP rose by 1% in the December quarter, slightly improving from a revised 0.9% increase in the preceding period. Overall, the GDP for 2025 grew by 3.5%, building on the 2.6% increase seen in 2024, marking the third consecutive year of economic growth.