Hong Kong consumer spending to rise amid steady economic growth, says financial secretary.

Hong Kong's consumer spending is expected to rise due to steady economic growth and a brisk financial market, according to Financial Secretary Paul Chan. He predicts a 10th consecutive quarter of growth, with retail sales up 0.3% YoY and a 3.1% overall economic expansion in Q2. Chan notes that home prices have warmed up, and real estate deals have increased, which will boost local incomes and consumption. The government will work with industries to land more mega events and spur consumption.

Hong Kong's retail sales have shown signs of stabilization, with a 0.3% year-on-year increase in May and June, according to the latest government data [1]. This follows a 2.4% rise in May compared to the same month last year. The value of retail sales in June reached HK$30.1 billion ($3.8 billion), marking the second consecutive month of growth. Despite a 0.3% decrease in volume terms from a year earlier, this trend indicates a positive shift in consumer sentiment.

Financial Secretary Paul Chan Mo-po has highlighted the stabilizing nature of Hong Kong's retail and catering sectors, which are contributing to the overall economic growth. The SAR's economy expanded by 3.1% year-on-year in the second quarter of 2025, driven by positive increases in exports, domestic consumption, and fixed investment [2]. Chan noted that the retail and catering sectors are showing signs of stabilization despite ongoing pressures.

The government's proactive efforts in promoting tourism and mega events, along with enterprises' efforts to provide diversified experiences, are supporting the consumption sentiment in the domestic market. June tourist arrivals rose by 11% year-on-year, with the number of mainland Chinese visitors up by 12% [1]. The Hong Kong Trade Development Council is also organizing the second Hong Kong Shopping Festival to promote local brands and goods on major e-commerce platforms, further boosting consumption [2].

The local real-estate market is also stabilizing, with residential property prices remaining stable and rental performance resilient. The average monthly transaction volume in the second quarter rose to about 5,600, indicating an active market [2]. The government's efforts to attract investment and talent have increased overall demand for buildings, supporting the real estate sector and contributing to domestic consumption.

Chan predicts that the stabilization of the residential property market, the thriving financial market, and the increase in workers' real incomes will provide further support for domestic consumption. The SAR will continue to capitalize on the promotion of mega events to attract more overseas tourists to Hong Kong.

References:
[1] https://www.reuters.com/world/asia-pacific/hong-kong-june-retail-sales-rise-07-up-2nd-straight-month-2025-07-31/
[2] https://www.chinadailyasia.com/article/617236