Hong Kong's economy has resumed growth since 2023, expanding by 2.5% last year and continuing with a 3.1% increase in the first quarter of this year. In his weekly blog post yesterday (July 27), Financial Secretary Paul Chan noted that despite complex external conditions, Hong Kong's economy has demonstrated strong resilience. He previewed that the second-quarter GDP figures to be released soon will maintain an upward trend, marking the tenth consecutive quarter of growth. Private consumption, which had declined for four straight quarters, is expected to rebound in Q2 this year.
With economic momentum sustained, continued capital inflows, a buoyant stock market, and stabilized property prices—coupled with the SAR government's vigorous promotion of mega events and high-value-added tourism, along with active private sector participation—private consumption and market sentiment have received substantial support. Chan highlighted that recent major events, such as the Hong Kong Football Festival 2025 at Kai Tak Sports Park and the Ani-Com & Games Hong Kong at the Convention and Exhibition Centre, attracted enthusiastic participation from local and overseas fans, particularly from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), boosting sales of related products and creating business opportunities.
According to Chan, amid shifting international political and economic landscapes and rapid technological transformation, Hong Kong's economy continues to undergo structural upgrades. With support from the central government and years of collaborative efforts between the SAR government and various sectors, the local economy has sustained growth. Capital inflows remain steady, financial market sentiment is positive, the residential property market has stabilized, labor productivity has improved, and median employee incomes have continued to rise.
He also emphasized that Hong Kong's overall competitiveness and appeal are steadily strengthening.
"The preliminary Q2 GDP estimate, to be released shortly, is expected to show sustained growth driven by exports, overall investment, and private consumption, marking the tenth consecutive quarter of expansion."
Retail sales volume in May recorded its first year-on-year increase in 14 months, which Chan mentioned as reflecting initial signs of stabilization in the consumer market. He cautiously expects June's figures to follow a similar trend, with private consumption—after four consecutive quarters of decline—likely to rebound in Q2.
Median Monthly income for full-time employees rises 6.8% YoY
Chan noted that during this more-than-two-year economic growth cycle, industries have responded to transformation and structural adjustments at varying speeds. Many emerging sectors and traditional businesses undergoing active restructuring have increased hiring. From March to May this year, the median monthly income for full-time employees rose 6.8% year-on-year to HK$25,000.
Overall, Hong Kong's job market remains relatively stable. While labor-intensive sectors like retail and catering face greater pressure, improving consumption sentiment is expected to provide support. Employment in the construction sector is also likely to gradually recover as the property market stabilizes and government infrastructure projects accelerate. The SAR government will enhance measures such as vocational retraining and digital upskilling to assist workers in securing employment.
Job creation through business expansion
The government has been working at full speed to identify new economic growth drivers, strongly supporting innovation and technology development. By attracting more enterprises to establish operations in Hong Kong and encouraging local business expansion, the aim is to create more high-quality, high-skilled jobs while supporting demand for other types of employment.
Chan stated that the government is committed to exploring new overseas markets, forging new partnerships, and developing supply chain management hubs, allowing Hong Kong to flexibly seize opportunities amid complex geopolitical dynamics. He expressed confidence that with persistent efforts, as more companies choose to set up or expand in Hong Kong, the city's overall competitiveness will further strengthen, gradually providing more support to the job market.
(Source: Wen Wei Po; Journalist: Fei Xiaoye; English Editor: Darius)
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