Hong Kong Economy Grows at Fastest Pace in 2 Years

Hong Kong’s economy expanded by 3.8% year-on-year in the fourth quarter of 2025, following a downwardly revised 3.7% growth in the third quarter, preliminary data showed. This was the strongest growth since the fourth quarter of 2023, supported by increases in private consumption (2.5% vs 2.4% in Q3) and gross fixed capital formation (10.9% vs 3.4%). Meanwhile, government spending slowed down (1.4% vs 2%). Net trade also contributed negatively to the GDP, as export growth (15.5% vs 12%) was outpaced by imports (18.4% vs 11.7%). On a seasonally adjusted quarterly basis, GDP rose by 1% in the December quarter, following an upwardly revised 0.9% increase in the previous period. For 2025 as a whole, GDP grew by 3.5%, accelerating from a 2.6% rise in 2024 and marking the third consecutive year of expansion.