Hong Kong's GDP Grows 3.1% in Q2 2025, Driven by Strong Exports and Improved Domestic Demand.

Advance estimates on Gross Domestic Product for second quarter of 2025

The Census and Statistics Department (C&SD) released today (July 31) the advance estimates on Gross Domestic Product (GDP) for the second quarter of 2025.

According to the advance estimates, GDP increased by 3.1% in real terms in the second quarter of 2025 over a year earlier, compared with the increase of 3.0% in the first quarter.

Analysed by major GDP component, private consumption expenditure increased by 1.9% in real terms in the second quarter of 2025 over a year earlier, as against the decrease of 1.2% in the first quarter.

Government consumption expenditure measured in national accounts terms recorded an increase of 2.5% in real terms in the second quarter of 2025 over a year earlier, compared with the increase of 0.9% in the first quarter.

Gross domestic fixed capital formation increased by 2.9% in real terms in the second quarter of 2025 over a year earlier, following the increase of 1.1% in the first quarter.

Over the same period, total exports of goods measured in national accounts terms recorded an increase of 11.5% in real terms over a year earlier, accelerated further from the growth of 8.4% in the first quarter. Imports of goods measured in national accounts terms grew by 12.7% in real terms in the second quarter of 2025, compared with the increase of 7.2% in the first quarter.

Exports of services rose further by 7.5% in real terms in the second quarter of 2025 over a year earlier, after the increase of 6.3% in the first quarter. Imports of services increased by 7.0% in real terms in the second quarter of 2025, compared with the increase of 4.7% in the first quarter.

On a seasonally adjusted quarter-to-quarter comparison basis, GDP increased by 0.4% in real terms in the second quarter of 2025 when compared with the first quarter.

Commentary

A Government spokesman said that the Hong Kong economy continued to expand solidly in the second quarter of 2025, supported by strong exports performance and improved domestic demand. According to the advance estimates, real GDP grew by 3.1% over a year earlier, picking up slightly from the preceding quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP rose further by 0.4%.

Analysed by major expenditure component, total exports of goods saw accelerated growth, as the external demand was resilient and the temporary easing of US tariff measures led to some "rush shipments". Exports of services continued to expand notably, thanks to strong growth in inbound tourism, further expansion in cross-boundary traffic, and vibrant financial and related business service activities amid the buoyant local stock market. Domestically, private consumption expenditure resumed moderate growth after four consecutive quarters of decline, as supported by the stabilisation in the domestic consumption market. Meanwhile, overall investment expenditure increased further alongside the economic expansion.

The Hong Kong economy exhibited remarkable resilience in the first half of 2025. Looking ahead, steady economic growth in Asia, particularly in the Mainland, combined with the Government's various measures to bolster consumption sentiment, attract investment, diversify markets, and promote economic growth, will continue to provide steadfast support for various segments of the Hong Kong economy. Nevertheless, uncertainties in the external environment remain elevated. The US' renewed tariff hikes of late will exert pressure on global trade flows as well as its domestic economic activity and inflation. The uncertain pace of US interest rate cuts will also affect investment sentiment. Moreover, the "rush shipment" effect is expected to fade later this year. Hong Kong’s economic performance going forward will, to a certain extent, depend on how these factors evolve.

The revised figures on GDP and more detailed statistics for the second quarter of 2025, as well as the revised GDP forecast for 2025, will be released on August 15, 2025.

Further information

The year-on-year percentage changes of GDP and selected major expenditure components in real terms from the second quarter of 2024 to the second quarter of 2025 are shown in Table 1.

When more data become available, the C&SD will compile revised figures on GDP. The revised figures on GDP and more detailed statistics for the second quarter of 2025 will be released at the C&SD website (www.censtatd.gov.hk/en/scode250.html) and the Gross Domestic Product by Expenditure Component report (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1030001&scode=250) on August15,2025.

For enquiries about statistics on GDP by expenditure component, please contact the National Income Branch (1) of the C&SD (Tel: 2582 5077 or email: gdp-e@censtatd.gov.hk).

Source: AI-found images

Labour Department highly concerned about fatal work accident that happened in Tsuen Wan today

The Labour Department (LD) is highly concerned about a fatal work accident that happened at a construction site in Tsuen Wan this afternoon (January 14), in which several oxy-acetylene cylinders fell from a container during a lifting operation and hit workers underneath, resulting in the death of one worker and injuries to two workers. The LD is saddened by the death and injury of the workers in the accident, and expresses its deepest sympathies to the victim’s family and the injured workers.

The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and have issued suspension notices to the contractors concerned, suspending the lifting operation at the site. The contractors cannot resume the work process until the LD is satisfied that suitable measures to abate the relevant risks have been taken."

The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of the duty holders and recommend improvement measures. We will take actions pursuant to the law if there is any violation of the work safety legislation."

To prevent loads being lifted from falling and hitting workers, the LD reminds employers to ensure that (i) the loads have been safely and securely connected to lifting gear before lifting operations; (ii) the gate of the container holding the loads is properly locked or fastened; and (iii) lifting zone is demarcated and barricaded, with no one entering the zone during lifting operations.

The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.

In regard to today's accident, the LD will issue a Work Safety Alert through its mobile application "OSH 2.0", website and email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.

The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.

For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.

Source: AI-found images