Hong Kong's Economy Records 10th Straight Quarter of Growth, Says Finance Chief

Hong Kong's economy has grown for the 10th straight quarter, driven by exports, investment, and private consumption. Retail sales in May showed year-on-year growth for the first time in 14 months, and figures for June are cautiously optimistic. The government is actively pursuing new growth drivers, including innovation and technology, and expanding into overseas markets to capture opportunities.

Hong Kong's economy has shown remarkable resilience, growing for the 10th consecutive quarter, driven by strong exports, investment, and private consumption. According to the latest data from the Hong Kong Census and Statistics Department, real GDP expanded by 3.1% year-on-year in the first quarter of 2025, picking up from the 2.5% growth in the preceding quarter [1]. This growth was primarily supported by visible increases in exports of goods and services, as well as the resumption of moderate growth in overall investment expenditure.

The external sector also demonstrated resilience, with merchandise exports showing strong growth. In May 2025, exports increased by 15.5% year-on-year, driven by robust growth in exports to the Mainland and most other Asian markets [1]. This growth is expected to continue, supported by the sustained steady growth of the Mainland economy and Hong Kong's enhanced economic and trade ties with different markets [1].

Retail sales in Hong Kong also showed signs of recovery. After a 14-month decline, retail sales in May 2025 grew by 2.4% year-on-year, marking the first year-on-year increase since June 2024 [1]. This rebound is attributed to various factors, including easing interest rates, a stabilizing Hong Kong dollar, and renewed consumer demand [2]. The retail sector's uneven recovery, with some categories showing double-digit growth while others remain weak, highlights the importance of sector-specific analysis for investors [2].

The Hong Kong government is actively pursuing new growth drivers to capitalize on global opportunities. The government is focusing on innovation and technology, as well as expanding into overseas markets to capture new opportunities. These efforts are aimed at diversifying the economy and reducing its dependence on traditional sectors [1].

Despite these positive developments, uncertainties in the trade policies of the United States and the global economic outlook remain a concern. The change in consumption patterns of residents and visitors also poses constraints on driving consumption in the domestic market [1]. However, the government's proactive policies to promote mega events and tourism, along with sustained increases in employment earnings, are expected to boost consumption sentiment [1].

In conclusion, Hong Kong's economy has shown resilience and growth, driven by strong exports, investment, and private consumption. The retail sector is showing early signs of recovery, and the government is actively pursuing new growth drivers. However, global uncertainties and changing consumption patterns remain challenges that need to be addressed.

References:
[1] https://www.hkeconomy.gov.hk/en/situation/development/index.htm
[2] https://www.ainvest.com/news/hong-kong-retail-sector-strategic-rebound-2024-macroeconomic-currency-shifts-2507/