Hong Kong’s gross domestic product is expected to maintain its upward momentum for the second quarter of this year, marking the 10th consecutive quarter of growth, Financial Secretary Paul Chan Mo-po wrote in his Sunday blog.

The sustained growth reflects the city’s economic resilience amid global uncertainties, driven by robust exports, private consumption, and investment, he said.  

The finance chief said that despite external complexities, the local economy has demonstrated remarkable adaptability, with key sectors contributing to the rebound. Private consumption, in particular, showed signs of stabilizing after four quarters of decline, supported by improved market sentiment, capital inflows, and government-led initiatives to boost tourism and large-scale events.

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Official preliminary GDP estimates for the second quarter, due to be released this week, follow a 3.1-percent, year-on-year increase in the first three months of 2025, building on last year’s 2.5-percent growth. Employment and wages have also been on a positive trend. From March to May this year, the median monthly income of full-time employees rose 6.8 percent year-on-year to HK$25,000 ($3,205).

However, Chan said there has been an uneven recovery in various sectors. While fast-growing industries like innovation and technology are creating higher-skilled jobs, labor-intensive sectors, such as retail and catering, face lingering pressures. The construction business, buoyed by a stabilized property market and accelerated public projects, is expected to see gradual improvement.

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Recent high-profile activities, such as the Hong Kong football fiesta at Kai Tak Sports Park and the 26th Hong Kong Animation-Comic-Game Festival at the Hong Kong Convention and Exhibition Centre, drew enthusiastic participation from local and Chinese mainland visitors, spurring retail sales.

The retail sales volume in May recorded its first year-on-year growth in 14 months, with June figures also projected to show cautious optimism.

The HKSAR government has stepped up efforts to diversify the economy, focusing on I&T to attract global enterprises and cultivate high-value jobs. Hong Kong Investment Corporation will lead a delegation of tech firms to Malaysia and Brunei this week to explore co-investment opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and beyond.

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Chan said economic transformation is an ongoing process, underscoring Hong Kong’s strategies to navigate geopolitical shifts, harness technology, and draw international capital. With sustained policy support from the central government and targeted local measures, he’s confident about  Hong Kong’s long-term competitiveness, ensuring broad-based benefits for residents.

As Hong Kong enters its third year of post-pandemic growth, the focus remains on structural upgrades and inclusive development -- a key to securing the city’s status as a global financial and innovation hub.

Contact the writer at mikegu@chinadailyhk.com