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Hong Kong’s economy expanded by 3.1% year-on-year in Q2 2025, in line with preliminary estimates and accelerating from 3.0% growth in the previous quarter. This marked the strongest growth since Q4 2023, mainly supported by robust exports and improved domestic demand. Private consumption rebounded 1.9% (vs. -1.2% in Q1 2025), government spending rose 2.5% (vs. 0.9%), while gross fixed capital formation grew further by 2.8% (vs. 1.1%). On the external front, exports of goods surged 11.5% (vs. 8.4%), driven by resilient external demand and temporary easing of US tariffs that prompted some “rush shipments.” Exports of services expanded 7.5% (vs. 6.3%), supported by strong inbound tourism and further growth in cross-boundary traffic. Meanwhile, imports of goods increased 12.6% (vs. 7.2%), and imports of services rose 7.2% (vs. 4.7%). On a seasonally adjusted quarterly basis, the economy advanced 0.4%, easing from a revised 1.8% gain in Q1.