Economic Growth - Hong Kong's economy continues to expand steadily, supported by strong export performance and improved local demand, with GDP increasing by 3.1% year-on-year in Q2 2025, marking the tenth consecutive quarter of growth [1][2] - Private consumption expenditure has shown a recovery with a 1.9% year-on-year increase after four consecutive quarters of decline, while government consumption expenditure rose by 2.5% compared to the previous year [1][2] Investment and Trade - Local fixed capital formation increased by 2.9% year-on-year in Q2 2025, following a 1.1% rise in Q1 [2] - Merchandise exports grew by 11.5% year-on-year, accelerating from 8.4% in Q1, while imports rose by 12.7%, up from 7.2% in the previous quarter [2][3] Retail Sector - The retail sector is stabilizing, with total retail sales value in June estimated at HKD 30.1 billion, a 0.7% year-on-year increase [2][3] - Seasonal adjustments show a 0.3% increase in retail sales value and a 2.7% increase in retail sales volume from Q1 to Q2 2025 [2] Financial Market - The Hong Kong stock market is gradually recovering, with 42 IPOs raising over HKD 107 billion in the first half of the year, a 22% increase compared to the previous year [4] - The Hang Seng Index rose by 20% in the first half of the year, marking the largest half-year increase in history [4] Government Initiatives - The Hong Kong government is accelerating economic transformation by promoting high-value industries and has launched various support programs for strategic industries [4][5] - The government is also consulting on legislation for digital asset trading and custody services to foster the development of the digital asset market [4] Competitive Advantage - Strengthening ties with mainland China is seen as a significant long-term advantage for Hong Kong's development, with recent agreements enhancing investment facilitation [5] - Hong Kong's global competitiveness ranking has improved to third place, reflecting the effectiveness of government policies [5]

Economic Performance - Hong Kong's economy shows resilience in the first half of 2025, supported by strong export performance and improved local demand [1][2] - The GDP in Q2 2025 increased by 3.1% year-on-year, marking the tenth consecutive quarter of growth [1] - Private consumption expenditure rebounded with a 1.9% increase year-on-year after four consecutive quarters of decline [1] Retail Sector - Retail sales value in June 2025 was estimated at HKD 30.1 billion, a year-on-year increase of 0.7% [2] - Seasonally adjusted retail sales value in Q2 2025 rose by 0.3% compared to Q1 2025, while retail sales volume increased by 2.7% [2] - The retail sector is stabilizing, supported by rising employment income and a positive stock market [2] Trade and Exports - Total merchandise exports grew by 11.5% year-on-year, accelerating from 8.4% in Q1 2025 [1][3] - Merchandise imports also increased by 12.7%, higher than the 7.2% growth in Q1 2025 [1] Financial Market - The Hong Kong stock market saw significant activity with 42 IPOs raising over HKD 107 billion in the first half of 2025, a 22% increase compared to the previous year [3] - The Hang Seng Index rose by 20% in the first half of 2025, marking the largest half-year increase in history [3] Government Initiatives - The Hong Kong government is implementing measures to boost consumption, attract investment, and diversify markets to support economic growth [2][4] - New initiatives include the "New Industrial Acceleration Program" and "New Industrialization Subsidy Program" to support strategic industries [3][4] - The government is also consulting on legislation for digital asset trading and custody services to promote the digital asset market [4]