Hong Kong’s economy expanded 3.8 percent in the third quarter of this year over a year earlier despite trade tensions, thanks to resilient exports and recovering consumption.

The advance estimates on gross domestic product (GDP) for the Q3 mark a significant rise against a 3.1 percent increase in the previous quarter, data released by the Census and Statistics Department on Friday showed.

On a seasonally adjusted quarter-to-quarter basis, real GDP rose further by 0.7 percent.

“The Hong Kong economy staged a robust performance in the third quarter of 2025, driven by a continued surge in exports and sustained expansion in domestic demand,” a spokesman for the special administrative region government said in a statement.

Analyzed by major GDP component, private consumption expenditure rose by 2.1 percent in real terms in the third quarter over a year earlier, compared with a 1.9 percent rise in the previous quarter.

Meanwhile, government consumption expenditure recorded an increase of 1.6 percent in real terms in the Q3 of this year over a year earlier, while it saw a 2.5 percent increase in the second quarter.

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Analyzed by major expenditure component, total exports of goods continued to grow markedly in the third quarter, propelled by strong demand for electronics-related products and buoyant regional trade flows.

Exports of services also expanded notably, mainly supported by continued growth in inbound tourism and vibrant cross-boundary financial activities amid rises in global stock markets. Domestically, private consumption expenditure grew further.

“Overall investment expenditure saw an accelerated increase alongside the economic expansion and stabilization in the residential property market,” said the spokesman.

The SAR government expects the Hong Kong economy to see further solid growth for the rest of the year.

Sustained moderate growth of the global economy, together with the persistent stellar demand for electronic-related products of late, should provide further support to the city’s exports of goods, while continued increase in visitor arrivals and vibrant financial market activities should provide further impetus to exports of services, said the spokesman.

Terming the renewed interest rate cuts in the United States since September “conducive to boosting asset market sentiment”, the spokesman said: “Coupled with a gradual recovery in consumption confidence and also a visible improvement in business sentiment from earlier this year, these developments should lend support to local consumption and investment activity.”

The SAR government's various measures to develop the economy and diversify markets will also provide support, added the spokesman.