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.


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
Although the latest unemployment rate rose slightly over the preceding three-month period, we note the positive development that the total employment also increased during the same period. The uptick in the number of unemployed persons was partly attributable to the influx of fresh graduates and school leavers entering the labour market.
Looking ahead, the sustained growth of the Hong Kong economy should be able to drive job creation, creating more employment opportunities for fresh graduates and school leavers joining the labour force. While unemployment rates across various industries will continue to hinge on their respective business conditions, the Government’s various measures to promote economic growth, bolster consumption sentiment and attract investment are anticipated to support the overall labour demand.


Retail and other economic indicators (PDF) (Excel)

Latest situation
Retail sales showed signs of stabilisation in recent months. The value of total retail sales increased further by 0.7% in June 2025 over the year.
Looking ahead, continued increase in employment earnings, buoyant local stock market, coupled with the Government’s proactive efforts in promoting tourism and mega events and also enterprises’ strenuous effort in providing more diversified experiences would provide support to the consumption sentiment in the domestic market and businesses of the retail sector.


Other Economic Indicators


Hong Kong population (PDF) (Excel)


Regional headquarters/offices and external investments (PDF) (Excel)


Asset market, exchange rates and interest rates (PDF) (Excel)