The Government reported that Hong Kong's economy continued to expand solidly in the second quarter of 2025, with real gross domestic product (GDP) rising 3.1% year-on-year.

On a seasonally adjusted quarter-to-quarter basis, real GDP rose 0.4% in the second quarter.

US trade policy continues to bring uncertainty to the global economy and global trade. However, resilient external demand, coupled with some rush shipments in response to temporary easing of tariff measures by the US, supported an acceleration in Hong Kong's total exports of goods, which saw a year-on-year real-terms increase of 11.5% in the second quarter.

Meanwhile, thanks to strong growth in inbound tourism, sustained expansion in cross-boundary traffic and vibrant financial sector activity, exports of services continued to expand significantly, up 7.5% over a year earlier.

Domestically, private consumption expenditure resumed moderate growth of 1.9% year on year following four consecutive quarters of contraction.

The labour market experienced some softening during the period, with the seasonally adjusted unemployment rate rising to 3.5%. Employment earnings grew solidly over a year earlier.

The residential property market showed some stabilisation during the quarter. Flat prices held broadly stable, and rentals stayed resilient.

Meanwhile, consumer price inflation stayed modest in the second quarter, with the underlying Composite Consumer Price Index (CCPI) rising 1.1% over a year earlier and the headline CCPI increasing 1.8% year on year.

The Hong Kong economy is expected to maintain growth for the rest of 2025.