Economic Performance - In Q2 2025, Hong Kong's real GDP grew by 3.1% year-on-year, matching the previous quarter's growth of 3.0% [1] - Seasonally adjusted, the real GDP increased by 0.4% quarter-on-quarter, down from 1.8% in the previous quarter [1] External Trade - Overall merchandise exports accelerated to a growth of 11.5% year-on-year in Q2 2025, following an 8.4% increase in the previous quarter [2] - Exports to mainland China continued to show double-digit growth, while exports to ASEAN markets also increased [2] - Service output expanded by 7.5% year-on-year in Q2 2025, supported by strong tourism and cross-border transport [2] Internal Economy - Private consumption expenditure rose by 1.9% year-on-year in Q2 2025, recovering from a decline of 1.2% in the previous quarter [3] - Government consumption expenditure increased by 2.5% year-on-year in Q2 2025 [3] - Overall investment expenditure rose by 2.8% year-on-year, with significant increases in machinery and equipment spending [3] Labor Market - The unemployment rate increased to 3.5% in Q2 2025, up from 3.2% in the previous quarter [4] - The median monthly employment income for full-time employees grew by 6.3% year-on-year [4] Asset Market - The Hong Kong stock market maintained an upward trend, with the Hang Seng Index rising by 4.1% to 24,072 points by the end of Q2 2025 [5] - The residential property market showed signs of stabilization, with overall residential prices increasing by 1% [5] - The number of residential property transactions registered a significant rebound of 37% compared to the previous quarter [5] Inflation and Price Outlook - The basic composite consumer price index rose by 1.1% year-on-year in Q2 2025, slightly down from 1.2% in the previous quarter [6] - The overall inflation rate is projected to remain mild, with forecasts for basic and overall consumer price inflation at 1.5% and 1.8%, respectively [8] Future Economic Forecast - The economic outlook for the remainder of 2025 remains positive, with real GDP growth projected between 2% and 3% [7] - Factors such as ongoing employment income growth and a recovering property market are expected to support economic performance [7] - The uncertainty surrounding U.S. tariffs and interest rate changes may impact local investment sentiment [7]

Economic Performance - Hong Kong's real GDP grew by 3.1% year-on-year in Q1 2025, an increase from 2.5% in the previous quarter [1][4] - Seasonally adjusted, the real GDP rose by 1.9% quarter-on-quarter, revised from an earlier estimate of 2.0% [4] Trade and Exports - Overall merchandise exports increased significantly by 8.4% year-on-year in Q1 2025, up from a 1.3% increase in the previous quarter [6] - Service output also expanded by 6.6% year-on-year in Q1 2025, following a 6.5% increase in the previous quarter [6] Investment and Consumption - Total investment expenditure showed a moderate growth of 2.8% year-on-year in Q1 2025, recovering from a slight decline of 0.7% in the previous quarter [7] - Private consumption expenditure continued to decline slightly by 1.1% year-on-year, reflecting ongoing changes in consumer behavior [7] Labor Market - The unemployment rate remained low at 3.2% in Q1 2025, slightly up from 3.1% in the previous quarter, while the underemployment rate held steady at 1.1% [8] Asset Market - The Hong Kong stock market experienced volatility, with the Hang Seng Index reaching a three-year high of 24,771 points in mid-March 2025, before closing at 23,120 points at the end of Q1, a 15.3% increase from the end of 2024 [10] - Residential property prices declined by 2% in Q1 2025, while overall residential rents increased slightly by 0.4% [11] Inflation - The basic composite consumer price index rose by 1.2% year-on-year in Q1 2025, consistent with the previous quarter [12] - The overall composite consumer price index increased by 1.6% year-on-year, up from 1.4% in the previous quarter [12] Economic Forecast - The forecast for Hong Kong's real GDP growth for 2025 remains at 2% to 3%, consistent with earlier projections [15][17] - The inflation rate predictions for basic and overall consumer prices are maintained at 1.5% and 1.8%, respectively [15][17]