Core Insights - Hong Kong's real GDP grew by 3.1% year-on-year in Q2 2025, slightly higher than the growth rate in Q1 2025 [1][2] Economic Performance - Private consumption expenditure increased by 1.9% year-on-year in Q2 2025, marking a recovery after four consecutive quarters of decline [1] - Government consumption expenditure rose by 2.5% year-on-year [1] - Gross fixed capital formation saw a year-on-year increase of 2.9% [1] - Total merchandise exports grew by 11.5% year-on-year, while merchandise imports increased by 12.7% [1] - Service output rose by 7.5% year-on-year, and service input increased by 7.0% [1] Future Outlook - The economic expansion in Q2 2025 is supported by strong external demand and improved local demand [2] - The growth of the economy is expected to continue due to steady growth in the mainland economy and government measures to boost consumption and attract investment [2] - However, uncertainties in the external environment remain high, and the "export rush" effect is anticipated to fade later in the year [2]