(To watch the full press conference with sign language interpretation, click here.)

The Government reported that Hong Kong's economy staged a robust performance in the third quarter of 2025, with real gross domestic product (GDP) rising 3.8% year-on-year.

Presenting the Third Quarter Economic Report 2025 at a press conference today, Acting Government Economist Cecilia Lam said the robust performance was driven by a continued surge in exports and sustained expansion in domestic demand. On a seasonally adjusted quarter-to-quarter basis, real GDP rose 0.7% further in the third quarter.

Propelled by strong demand for electronic-related products and buoyant regional trade flows in Asia, total goods exports continued to grow markedly by 12.1% year-on-year in real terms in the third quarter. Exports of services also expanded notably by 6.3% in real terms over a year earlier, mainly supported by sustained increases in inbound tourism and cross-boundary traffic as well as vibrant cross-boundary financial service activities.

Domestically, private consumption expenditure picked up slightly in growth in the third quarter, rising further by 2.1% year-on-year in real terms, reflecting the continued recovery of the local consumption market.

Overall investment expenditure saw an accelerated increase of 4.3% in real terms over a year earlier, alongside the economic expansion and stabilisation in the residential property market. Flat prices showed a more visible pick-up and rentals remained solid.

The labour market softened in the third quarter. The seasonally adjusted unemployment rate rose to 3.9% from 3.5% in the preceding quarter. 

The Hong Kong economy is expected to have further solid growth for the rest of 2025, Ms Lam said.

“Sustained moderate growth of the global economy in the near term, coupled with easing China-US trade tensions of late and persistent demand for electronic-related products should lend support to Hong Kong’s exports of goods.

“Continued increases in inbound tourism and vibrant financial market activities should provide further impetus to exports of services.

“Domestically, the renewed US interest rate cuts since September are conducive to asset market sentiment.

“Together with the gradual recovery in consumption confidence and steadfast improvement in business sentiment, these developments should help bolster consumption and investment activities.

“The Government’s various measures to develop the economy and diversify markets will also provide support.”

Taking into account the actual out-turn in the first three quarters of this year and the near-term outlook, Hong Kong’s real GDP growth forecast for 2025 as a whole has been revised up to 3.2% from 2% to 3% in the August round of review.

As for the inflation outlook, as domestic cost pressures remain contained and external price pressures are subdued, overall inflation should remain modest in the near term. The forecasts for underlying and headline consumer price inflation rates this year have been revised down to 1.2% and 1.5% respectively, from 1.5% and 1.8% in the August round of review.