HK’s economic outlook bullish: FS

July 30, 2025

Voiceovver:

The Government announced its first business environment report in four years. 

While unveiling the latest report on Hong Kong’s business environment during a press conference, Financial Secretary Paul Chan explained that even though the city is experiencing economic upgrading and transformation, there are more opportunities than challenges.

The report elaborates on Hong Kong's institutional advantages under the "one country, two systems" principle, making it a desirable location for businesses. 

In addition, the implementation of the Hong Kong National Security Law and the Safeguarding National Security Ordinance has had a positive impact on improving the city’s business environment, making it a safe harbour for attracting international capital and investment.

The finance chief said that Hong Kong will achieve new economic breakthroughs and develop new growth points in the face of a complex and volatile external environment. The city is also trying to reach out to the world amid misperceptions.

Financial Secretary Paul Chan:

Over the last few years, because of COVID-19, a lot of overseas travellers have not come to Hong Kong. 

Also, given the geopolitics, the perception about Hong Kong in the western world is not entirely factual and correct, I would say.

The purpose of this report is to showcase what is the current situation in Hong Kong so that they would be able to better understand what is happening on the ground. 

As regards the question of the gross domestic product (GDP) estimate for the whole year. The first half (of 2025) is pretty positive. (The real GDP growth of the) first quarter is 3.1%, (with the) second quarter maintaining (its growth) momentum. 

Voiceover:

Mr Chan highlighted that the Government has achieved remarkable results in attracting enterprises, investment and talent. 

From January 2023 to the first six months of 2025, Invest Hong Kong assisted over 1,300 overseas and Mainland companies to set up or expand their business in Hong Kong, bringing in direct investment of more than $160 billion.

As of June 2025, a total of nearly 500,000 applications under various talent admission schemes were received, nearly 330,000 of which were approved, and nearly 220,000 of such talent have arrived in Hong Kong.

Financial Secretary Paul Chan today said that Hong Kong is experiencing economic upgrading and transformation, with more opportunities than challenges lying ahead.

Mr Chan made the assertion this afternoon as he unveiled a business report that elaborates on the institutional advantages Hong Kong enjoys under the "one country, two systems" principle that make it a desirable location for businesses.

Following on from a similar report in 2021, the new report outlines that Hong Kong's economy is picking up, with social stability having been restored and the city having emerged from the pandemic.

“Over the last few years, because of COVID-19, a lot of overseas travellers have not come to Hong Kong," Mr Chan remarked. “Also, given the geopolitics, the perception about Hong Kong in the western world is not entirely factual and correct, I would say.”

The Financial Secretary emphasised that the implementation of the Hong Kong National Security Law, and the Safeguarding National Security Ordinance, has had a positive impact on the city’s business environment, making it a safe harbour for attracting international capital and investment.

He added that the city will achieve new economic breakthroughs and develop new growth drivers in the face of a volatile external environment, as it is making efforts to reach out to the world and correct misperceptions.

In terms of overall economic performance, Mr Chan said real GDP growth in the first quarter of this year was 3.1%, with the second quarter maintaining that momentum.

Mr Chan also highlighted the Government’s efforts in attracting enterprises, investment and talent.

“From January 2023 to the first six months of 2025, Invest Hong Kong assisted over 1,300 overseas and Mainland companies to set up or expand their business in Hong Kong, bringing in direct investment of more than $160 billion.

“As of June 2025, a total of nearly 500,000 applications under various talent admission schemes were received, nearly 330,000 of which were approved, and nearly 220,000 of such talent have arrived in Hong Kong.”

Click here for the "Report on Hong Kong's Business Environment: Unique Strengths under 'One Country, Two Systems'".