Latest Developments
Gross Domestic Product and its major components (PDF) (Excel)
Latest situation
The Hong Kong economy continued to expand solidly in the second quarter of 2025, supported by strong exports performance and improved domestic demand. Real Gross Domestic Product (GDP) grew by 3.1% year-on-year in the second quarter, picking up slightly from the growth of 3.0% in the preceding quarter. On a seasonally adjusted quarter-to-quarter basis, real GDP rose further by 0.4%. Looking ahead, the Hong Kong economy is expected to maintain growth for the rest of 2025. Steady economic growth in Asia in particular the Mainland, together with the sustained increases in local employment earnings, the robust stock market, and the stabilisation of residential property market will bode well for various sectors of the Hong Kong economy. The Government’s various measures to boost consumption, attract investment and diversify markets will also provide further support to the Hong Kong economy. Yet, the tariff rates announced by the US in early August stay elevated, and its tariff policy on some commodities remains quite uncertain. The impact of these developments on international trade flows and also the US’ inflation and economic activities may surface gradually later this year. Furthermore, the uncertainty surrounding the pace of interest rate cut in the US will also affect local investment sentiment. Hong Kong’s economic growth momentum going forward will, to a certain extent, depend on how these factors evolve. Taking into account the actual outturn in the first half of the year and the latest developments of the global and local situation, the real GDP growth forecast for 2025 as a whole is maintained at 2%-3%, the same as that in the May round of review. The forecasts for the underlying and headline consumer price inflation rates for 2025 are also maintained at 1.5% and 1.8% respectively.
External sector (PDF) (Excel)
Latest situation
Merchandise exports performance held up well in July. The value of merchandise exports grew visibly further by 14.3% over a year earlier. Exports to the Mainland and a majority of other Asian markets grew notably further, while those to the United States and the European Union continued to fall.
Looking ahead, steady economic growth in Asia, in particular the Mainland, as well as Hong Kong’s enhanced economic and trade ties with different markets, should continue to provide support to Hong Kong’s merchandise trade performance. Yet, the United States’ elevated tariff rates and lingering uncertainty surrounding its tariff policy may begin to weigh on international trade flows in the near term. The Government will continue to monitor the situation closely and stay vigilant.
- Link to press release of external merchandise trade statistics
- Link to press release of volume and price statistics of external merchandise trade
Prices (PDF) (Excel)
Latest situation
Consumer price inflation stayed modest in July. The underlying Composite CPI increased by 1.0% over a year earlier, same as the increase in the preceding month. Price pressures on major components were largely contained.
Looking ahead, as pressures from domestic costs and external prices stay broadly in check, overall inflation should remain modest in the near term.
Labour market (PDF) (Excel)
Latest situation
The seasonally adjusted unemployment rate stayed the same at 3.7% in June – August 2025 as that in the preceding three-month period. The labour force and total employment increased further to 3 831 600 and 3 680 600 respectively.
Looking ahead, while the business situations of certain sectors will continue to weigh on employment, steady growth of the Hong Kong economy as well as the Government’s various measures to boost economic momentum and bolster consumption would provide support to the overall labour demand.
- Link to press release of unemployment and underemployment statistics
- Link to press release of employment and vacancies statistics
- Link to press release of wage and payroll statistics
Retail and other economic indicators (PDF) (Excel)
Latest situation
Retail sales continued to stabilise in July. The value of total retail sales increased by 1.8% over the year, slightly faster than the increase in the preceding month.
Looking ahead, local consumption sentiment should remain steady. The Government’s proactive efforts in promoting tourism and mega events will also benefit retail businesses.
Other Economic Indicators
Hong Kong population (PDF) (Excel)
Regional headquarters/offices and external investments (PDF) (Excel)
- Link to press release of annual survey of companies in Hong Kong with parent companies located outside Hong Kong
- Link to press release of Hong Kong's balance of payments and international investment position statistics