HONG KONG (Reuters) -Hong Kong’s economy expanded by 3.8% in the third quarter from the same period a year earlier, the government said on Friday, supported by a surge in exports and sustained growth in domestic demand.
That was in line with the official estimate released in late October, marking the 11th consecutive quarter of expansion.
The economy grew 3.1% in the second quarter and 3.0% in the first three months of 2025.
The government also revised up its 2025 GDP forecast to 3.2%, from 2%-3% in its August review.
On a seasonally adjusted quarterly basis, the economy grew 0.7% in July-September, the revised figures showed. That compared with 0.4% growth in April-June and 1.8% in January-March.
“Looking ahead, the Hong Kong economy should see further solid growth for the rest of 2025,” acting government economist Cecilia Lam said in a statement, adding that continued increases in inbound tourism and vibrant financial market activities should provide impetus to exports of services.
“Sustained moderate growth of the global economy in the near term, coupled with easing China-U.S. trade tensions of late and persistent demand for electronic-related products, should lend support to Hong Kong’s exports of goods,” Lam said.
The government revised down its 2025 forecasts for underlying and headline consumer price inflation to 1.2% and 1.5%, respectively, from 1.5% and 1.8% in the August review.
“Overall inflation should stay modest in the near term, as domestic cost pressures remain contained and external price pressures are subdued,” Lam added.
Overall investment expenditure rose further, driven by an increase in spending on machinery, equipment, and intellectual property products, with private sector spending showing strong growth, according to the government.
(Reporting by Hong Kong newsroom; Editing by Jacqueline Wong and Mark Potter)
