Buoyed by resilient exports, an improved local consumption market, and strong investment, Hong Kong’s economy grew at the fastest pace since 2021, logging a robust 3.5 percent GDP expansion for 2025, according to advance estimates by the Census and Statistics Department.

According to the estimates, the city’s GDP, or gross domestic product, increased by 3.8 percent in real terms in the fourth quarter of 2025 over a year earlier, compared with the increase of 3.7 percent in the previous quarter.

Pointing out that the growth momentum strengthened progressively over the course of 2025, a government spokesman said in a statement that overall investment expenditure grew at a faster pace alongside a more entrenched economic expansion.

Analyzed by major GDP component, private consumption expenditure rose by 2.5 percent in real terms in the fourth quarter of 2025 over a year earlier, compared with the increase of 2.4 percent in the third quarter.

On a seasonally adjusted quarter-to-quarter comparison basis, GDP rose by 1.0 percent in real terms in the fourth quarter of last year when compared with the previous quarter.

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According to official data, total exports of goods measured in national accounts terms saw an increase of 15.5 percent in the fourth quarter of 2025 over a year earlier, accelerating further from 12.0 percent growth in the previous quarter.

Over the same period, imports of goods measured in national accounts terms grew by 18.4 percent, compared with a 11.7 percent rise in Q3.

For 2025 as a whole, total exports of goods and imports of goods recorded increases of 12.0 percent and 12.6 percent, respectively, over 2024, the department added.

“Total exports of goods increased markedly, propelled by strong demand for electronics-related products and buoyant regional trade flows in Asia,” said the government spokesman.

Exports of services marked a 4.9 percent increase in Q4 of 2025 over a year earlier, after an increase of 6.6 percent in the previous quarter. Imports of services, meanwhile, rose by 3.1 percent in the fourth quarter, compared with the increase of 2.3 percent in Q3.

For the whole of 2025, exports of services and imports of services saw increases of 6.3 percent and 4.1 percent, respectively, over 2024.

Government consumption expenditure measured in national accounts terms recorded a year-on-year increase of 1.4 percent in real terms in Q4 of 2025, compared with a 2.0 percent rise in the third quarter. For 2025 as a whole, government consumption expenditure increased by 1.6 percent in real terms over 2024.

“Domestically, private consumption expenditure turned to an increase, as the local consumption market gradually improved since the second quarter of the year,” the spokesman said.

The special administrative region government expects the city’s economy to maintain good momentum this year.

Sustained moderate expansion of the global economy, coupled with persistently strong global demand for artificial intelligence-enabled electronic-related products, will lend support to Hong Kong's export performance, said the spokesman.

Domestically, improving consumer and business sentiment, together with the expected further interest rate cuts in the United States, will benefit consumption and investment activities, the spokesman added.