Balance of Payments, International Investment Position and External Debt statistics for the fourth quarter of 2025 and the whole year of 2025
The Census and Statistics Department (C&SD) released today (March 20) the preliminary Balance of Payments (BoP), International Investment Position (IIP) and External Debt (ED) statistics of Hong Kong for the fourth quarter of 2025 and the whole year of 2025.
I. Balance of Payments
Hong Kong recorded a BoP surplus of $46.5 billion (5.3% of Gross Domestic Product (GDP)) in the fourth quarter of 2025. Reserve assets correspondingly increased by the same amount. This was against a BoP deficit of $136.5 billion (15.9% of GDP) in the third quarter of 2025.
For 2025 as a whole, there was a BoP deficit of $69.9 billion (2.1% of GDP), compared with a deficit of $89.7 billion (2.8% of GDP) in 2024.
Current account
The current account recorded a surplus of $93.9 billion (10.6% of GDP) in the fourth quarter of 2025. This reflects that Hong Kong's savings was greater than its investment, enabling Hong Kong to accumulate external financial assets (such as equity securities or debt securities) as a buffer against global financial volatilities. Compared with the current account surplus of $110.9 billion (13.2% of GDP) in the fourth quarter of 2024, the decrease in surplus was mainly due to the switch in goods balance from surplus to deficit, partly offset by the increases in net inflow of primary income and services surplus.
The goods account recorded a deficit of $32.5 billion in the fourth quarter of 2025, as against a surplus of $5.9 billion in the same quarter of 2024. Over the same period, the services surplus increased from $32.7 billion to $37.9 billion. The primary income inflow and outflow amounted to $523.5 billion and $430.2 billion respectively, thus yielding a net inflow of $93.3 billion in the fourth quarter of 2025, compared with a net inflow of $78.3 billion in the same quarter of 2024.
For 2025 as a whole, the current account surplus was $406.6 billion (12.2% of GDP), smaller than that of $418.6 billion (13.1% of GDP) in 2024, mainly due to the increase in goods deficit, largely offset by the increases in services surplus and net inflow of primary income.
Financial account
An overall increase in financial non-reserve assets amounting to $86.2 billion (9.8% of GDP) was recorded in the fourth quarter of 2025, compared with an overall increase of $271.0 billion (31.6% of GDP) in the third quarter of 2025. The overall increase recorded in the fourth quarter of 2025 was due to the net increases in other investment, portfolio investment and financial derivatives, partly offset by the net decrease in direct investment.
In the fourth quarter of 2025, reserve assets increased by $46.5 billion, as against a decrease of $136.5 billion in the third quarter of 2025.
For 2025 as a whole, financial non-reserve assets recorded an overall increase of $624.1 billion (18.7% of GDP), compared with an overall increase of $551.1 billion (17.3% of GDP) in 2024. The overall increase recorded in 2025 was due to the net increases in portfolio investment and other investment, partly offset by the net decreases in direct investment and financial derivatives.
In 2025, reserve assets decreased by $69.9 billion, compared with a decrease of $89.7 billion in 2024.
II. International Investment Position
At the end of the fourth quarter of 2025, both Hong Kong's external financial assets and liabilities stood at a very high level, amounting to $60,122.8 billion (18.0 times of GDP) and $40,613.1 billion (12.2 times of GDP) respectively, a typical feature of a prominent international financial centre.
Hong Kong's net external financial assets (i.e. assets minus liabilities) amounted to $19,509.7 billion (5.9 times of GDP) at the end of the fourth quarter of 2025, compared with $19,649.9 billion (6.0 times of GDP) at the end of the third quarter of 2025. Hong Kong's net external financial assets to GDP ratio is one of the largest in the world, which provides the economy with a strong cushion against sudden external shocks.
III. External Debt
At the end of the fourth quarter of 2025, Hong Kong's gross ED amounted to $16,054.3 billion (4.8 times of GDP). Compared with $15,746.1 billion (also 4.8 times of GDP) at the end of the third quarter of 2025, gross ED increased by $308.2 billion. This was mainly attributable to the increases in ED of the banking sector and ED of other sectors, partly offset by the decrease in debt liabilities in direct investment (intercompany lending).
As one of the world's major financial centres, Hong Kong has a significant amount of ED held against the local banking sector arising through normal banking businesses. At the end of the fourth quarter of 2025, 52.5% of Hong Kong's ED was attributable to the banking sector. Other ED mainly consisted of ED of other sectors (30.4%) and debt liabilities in direct investment (intercompany lending) (15.6%).
Further information
BoP is a statistical statement that systematically summarises, for a specific time period (typically a year or a quarter), the economic transactions of an economy with the rest of the world (i.e. between residents and non-residents).
IIP is a balance sheet showing the stock of external financial assets and liabilities of an economy at a particular time point. The difference between the total value of external financial assets and liabilities is the net IIP of the economy, which provides a measure of net financial claims on non residents plus gold bullion held as monetary gold.
Gross ED, at a particular time point, is the outstanding amount of those actual current, and not contingent, liabilities that are owed to non-residents by residents of an economy and that require payment of principals and / or interests by the debtors at some time points in the future.
Table 1 presents Hong Kong's BoP. Table 2 presents the detailed current account and capital account, while Table 3 presents the detailed financial account. Table 4 shows Hong Kong's IIP, and Table 5 shows Hong Kong's ED.
Statistics on BoP, IIP and ED for the fourth quarter of 2025 and the whole year of 2025 are preliminary figures, which are subject to revision upon the availability of more data.
The latest statistical tables of BoP (including seasonally adjusted current account), IIP and ED can be downloaded at the website of the C&SD (www.censtatd.gov.hk/en/scode260.html). Analysis of the statistics, together with the conceptual and methodological details, are presented in the publication Balance of Payments, International Investment Position and External Debt Statistics of Hong Kong, Fourth Quarter 2025 published by the C&SD. Users can download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040001&scode=260).
For enquiries about the BoP, IIP and ED statistics, please contact the Balance of Payments Section of the C&SD (Tel.: 3863 2330 or email: bop@censtatd.gov.hk).
Source: AIA-created image
