Hong Kong's economy recorded a year-on-year expansion of 3.1% in the second quarter of 2025, aligning with preliminary forecasts and improving from the previous quarter's 3.0% growth. This performance represents the most robust growth since the fourth quarter of 2023, primarily fueled by strong exports and enhanced domestic demand. Private consumption made a notable recovery with a 1.9% increase, bouncing back from a -1.2% decline in the first quarter, while government expenditure grew by 2.5% compared to 0.9% previously. Additionally, gross fixed capital formation saw a further rise of 2.8%, up from 1.1%.
Externally, goods exports surged by 11.5%, up from an 8.4% increase, supported by sturdy external demand and a temporary reduction in U.S. tariffs, which led to some accelerated shipments. Service exportation also grew by 7.5%, rising from 6.3%, driven by strong inbound tourism and a further increase in cross-border traffic. Meanwhile, imports of goods climbed by 12.6%, from 7.2%, and service imports rose by 7.2%, compared to 4.7% earlier. On a seasonally adjusted basis, the economy expanded by 0.4% quarter-on-quarter, a slight deceleration from the revised 1.8% growth in the first quarter.
