Hong Kong economy grows most since 2021 on exports, investment

[HONG KONG] Hong Kong’s economy grew at the fastest pace since 2021, buoyed by unexpectedly resilient exports amid a global trade war and strong investment. 

The country’s gross domestic product expanded 3.5 per cent in 2025, based on advance estimates announced by the Census and Statistics Department on Friday (Jan 30), accelerating from 2.6 per cent in 2024 and outperforming the government’s revised forecast. 

Officials initially expected the economy to grow between 2 and 3 per cent in 2025, but raised the forecast in November after the third-quarter GDP expanded at the fastest pace since 2023.

The expansion in the final quarter was 3.8 per cent, well exceeding expectations.

The export strength of Hong Kong, a transhipment hub, has mirrored that of mainland China, its largest trade and economic partner.

Defying US tariffs, Chinese exports made deeper inroads to markets beyond America, sending its trade surplus to a record US$1.2 trillion in 2025. However, that export growth may slow in 2026 due to payback effects from front-loading of shipments over the past year.

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Hong Kong’s economic rebound came after the Asian financial hub had a blockbuster year of deal-making.

The share sales nearly quadrupled to more than US$73 billion through initial public offerings, placements and block trades, making Hong Kong the number one fundraising spot in Asia for the first time since 2013, ranking just behind the US globally. 

Hong Kong’s stock market also had a bull run in 2025, which helped with a recovery in private consumption. Even home prices rose 3.3 per cent, the first annual increase in four years, adding to signs of improved sentiment. BLOOMBERG