Hong Kong Reports Q4 2025 Balance of Payments and Investment Position Statistics with Notable Surplus and Increasing External Debt

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

Consumer Price Indices for February 2026

The Census and Statistics Department (C&SD) released today (March 20) the Consumer Price Index (CPI) figures for February 2026. According to the Composite CPI, overall consumer prices rose by 1.7% in February 2026 over the same month a year earlier, larger than the corresponding increase (1.1%) in January 2026. Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in February 2026 was 1.6%, also larger than that in January 2026 (1.0%). The larger increase was mainly due to the increases in the charges for package tours as well as inbound and outbound transport fares during the Chinese New Year, coupled with the fact that the Chinese New Year fell in January last year, resulting in a relatively lower base of comparison in February 2025.

It should be noted that consumer prices tend to show greater volatility in the first two months of a year due to the timing of the Chinese New Year. As the Chinese New Year fell in February this year but in January last year, the year-on-year comparison for January and February 2026 might have been affected by this factor to a certain extent. Taking the first two months of 2026 together to neutralise the effect of the Chinese New Year, the Composite CPI rose by 1.5% over the same period a year earlier. Netting out the effect of all Government's one-off relief measures, the corresponding increase was 1.3%.

On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the 3-month period ending February 2026 was 0.2%, the same as that for the 3-month period ending January 2026. Netting out the effects of all Government's one-off relief measures, the corresponding rates of increase were 0.1% and 0.2%.

Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.6%, 1.8% and 1.9% respectively in February 2026, as compared to 1.3%, 1.2% and 0.9% respectively in January 2026. Netting out the effects of all Government's one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 1.3%, 1.6% and 1.8% respectively in February 2026, as compared to 1.0%, 1.0% and 0.9% respectively in January 2026.

Taking the first two months of 2026 together, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were all 1.4%. Netting out the effects of all Government's one-off relief measures, the corresponding increases were 1.1%, 1.3% and 1.4% respectively.

On a seasonally adjusted basis, for the 3-month period ending February 2026, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) were 0.1%, 0.2% and 0.2% respectively. The corresponding rates of change for the 3-month period ending January 2026 were 0.3%, 0.2% and 0.2% respectively. Netting out the effects of all Government's one-off relief measures, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending February 2026 were 0.0%, 0.1% and 0.2% respectively, and the corresponding rates of change for the 3-month period ending January 2026 were all 0.2%.

Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in February 2026 for miscellaneous services (4.9%), transport (4.3%), electricity, gas and water (3.5%), miscellaneous goods (1.8%), alcoholic drinks and tobacco (1.8%), housing (1.1%), meals out and takeaway food (1.1%), and basic food (0.6%).

On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in February 2026 for clothing and footwear (-3.4%), and durable goods (-2.6%).

For the 3 months ending February 2026, the Composite CPI rose by 1.5% over the same period a year earlier, while the CPI(A), CPI(B) and CPI(C) all rose by 1.4%. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.3%, 1.1%, 1.3% and 1.4% respectively.

For the 12 months ending February 2026, the Composite CPI on average rose by 1.4% over the same period a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 1.7%, 1.3% and 1.1% respectively. The corresponding increases after netting out the effects of all Government's one-off relief measures were 1.1%, 1.2%, 1.0% and 1.0% respectively.

Commentary

A Government spokesman said that consumer price inflation stayed modest in early 2026. Taking January and February together to remove the fluctuation to the year-on-year comparison due to the different timing of the Chinese New Year compared with last year, the underlying Composite CPI increased by 1.3% over a year earlier, slightly higher than the increase of 1.2% in December 2025. Price pressures on various major components remained broadly in check.

Looking ahead, as international oil prices have surged since end-February amid the heightened geopolitical tensions, the import price pressures for specific fuel-related items have increased. The Government is monitoring the external developments closely and will respond as appropriate to safeguard price stability.

Further information

The CPIs and year-on-year rates of change at section level for February 2026 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government's one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.

More detailed statistics are given in the "Monthly Report on the Consumer Price Index". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).

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