Hong Kong's GDP grew by 3.8% year-on-year in the third quarter
According to the estimated data released by the Census and Statistics Department of the Hong Kong Special Administrative Region Government, Hong Kong's Gross Domestic Product (GDP) in the third quarter of 2025 grew by 3.8% year-on-year, up from 3.1% in the second quarter. Private consumption expenditure and merchandise exports both increased, growing by 2.1% and 12.2%, respectively. Government consumption expenditure and service output also saw growth, at 1.6% and 6.1%, respectively. The overall economic performance is strong, driven by the expansion of exports and internal demand
According to the Zhitong Finance APP, on October 31, the Census and Statistics Department of the Hong Kong Special Administrative Region government released the preliminary estimate of local Gross Domestic Product (GDP) for the third quarter of 2025. According to the preliminary estimate, the local GDP in the third quarter of 2025 increased by 3.8% compared to the same period last year, while the increase in the second quarter was 3.1%.
Analyzing the various main components of local GDP, private consumption expenditure in the third quarter of 2025 increased by 2.1% compared to the same period last year, while the increase in the second quarter was 1.9%.
Government consumption expenditure, calculated according to the national economic accounting definition, recorded a real increase of 1.6% in the third quarter of 2025 compared to the same period last year, while the increase in the second quarter was 2.5%.
Total local fixed capital formation further increased by 4.3% in the third quarter compared to the same period last year, following a real increase of 1.9% in the second quarter of 2025.
During the same period, total goods exports, calculated according to the national economic accounting definition, recorded a real increase of 12.2% compared to the same period last year, while the increase in the second quarter was 11.5%. Goods imports, calculated according to the national economic accounting definition, increased by 11.7% in the third quarter of 2025, while the increase in the second quarter was 12.6%.
Service output increased by 6.1% in the third quarter compared to the same period last year, following a real increase of 8.6% in the second quarter of 2025. Service input increased by 2.6% in the third quarter of 2025, while the increase in the second quarter was 7.3%.
The seasonally adjusted local GDP, compared on a quarter-on-quarter basis, increased by 0.7% in the third quarter of 2025 compared to the second quarter.
A government spokesperson stated that the Hong Kong economy performed robustly in the third quarter of 2025, driven by a continued significant increase in exports and sustained expansion in domestic demand. According to the preliminary estimate, the real local GDP grew by 3.8% year-on-year, which is larger than the 3.1% increase in the previous quarter. On a seasonally adjusted quarter-on-quarter basis, the real local GDP further increased by 0.7%.
Analyzing the main components of expenditure, strong demand for electronic-related products and active regional trade drove significant growth in overall goods exports in the third quarter. Service output also expanded significantly, mainly supported by the continued growth of the tourism industry in Hong Kong and active cross-border financial activities in the context of rising global stock markets. Locally, private consumption expenditure further increased. With economic expansion and stabilization in the residential property market, the overall investment expenditure growth accelerated.
Looking ahead, the Hong Kong economy is expected to continue to grow steadily for the remainder of 2025. The global economy is expected to maintain moderate growth in the short term, and the recent strong demand for electronic-related products should further support Hong Kong's goods exports. The continued increase in visitor arrivals and active financial market activities should further drive service exports. Locally, the resumption of interest rate cuts by the United States since September this year has been favorable for asset market sentiment; coupled with the gradual recovery of consumer confidence, the business environment has also significantly improved compared to earlier this year, which should support local consumption and investment activities. Various government measures to develop the economy and explore diversified markets will also provide support. However, external uncertainties, particularly the ongoing impact of trade barriers on the global economy, international trade, and financial conditions, still need to be closely monitored
