FX.co ★ Hong Kong Q2 GDP Growth Rises 3.1% Surpasses Expectations

In the second quarter of 2025, Hong Kong's economy experienced a 3.1% year-on-year growth, improving from a revised 3.0% in the first quarter and exceeding market predictions of 2.8%, based on preliminary data. This represents the most substantial growth since the fourth quarter of 2023, largely driven by strong export performance and a boost in domestic demand. Household consumption made a comeback, increasing by 1.9%, compared to a decline of 1.2% in the first quarter. Government expenditure also saw an uplift, climbing to 2.5% from 0.9%, while gross fixed capital formation continued to rise, reaching 2.9% compared to 1.1% previously. Externally, goods exports soared by 11.5%, up from 8.4%, facilitated by persistent external demand and a temporary relaxation of US tariffs, which resulted in a spike in expedited shipments. Service exports grew by 7.5%, compared to 6.3%, buoyed by vigorous inbound tourism and increased cross-boundary traffic. On the import side, goods imports went up by 12.7% from an earlier 7.2%, and service imports climbed 7.0% from 4.7%. Adjusted for seasonal variations, the economy grew by 0.4% on a quarterly basis, a slowdown from the revised 1.8% growth in the first quarter.