By Dr. Kevin Lau
Hong Kong has recently unveiled a series of economic indicators and international rankings that comprehensively demonstrate robust recovery momentum, sweeping away the city's gloom. Released successively on October 31 and November 4, 2025, these include preliminary estimates for the third-quarter gross domestic product (GDP), provisional September retail sales figures, end-of-third-quarter negative equity residential mortgage data, and the 2024 World Digital Competitiveness Ranking. All have delivered impressive performances, not only indicating a sustained warming of Hong Kong's economic environment but also fully highlighting the tangible effectiveness of the Special Administrative Region (SAR) government's policies. Amid global economic fluctuations and uncertainties, how has Hong Kong advanced steadily? All sectors of society should draw confidence from this and collectively drive the city's ongoing development.
First, the three major economic indicators shine brightly. The 2025 third-quarter GDP grew 3.8% in real terms year-on-year, further expanding from the 3.1% increase in the second quarter. Government consumption expenditure recorded a 1.6% rise, while private consumption expenditure climbed to 2.1%, outperforming the 1.9% in the second quarter. With internal demand strengthening, residents' willingness to spend has notably rebounded, naturally invigorating the retail market. September's total retail sales value was provisionally estimated at HK$31.3 billion, up 5.9% year-on-year—accelerating from August's 3.9% and marking five consecutive months of growth. Most major retail categories saw gains, with electrical and other durable goods surging 31.3% in sales value, and jewelry, watches, clocks, and valuable gifts rising 9.1%. Such data confirm that Hong Kong's economic vitality is gradually recovering.
The property market likewise shows signs of stability. According to the Hong Kong Monetary Authority's survey released on October 31, the number of negative equity residential mortgage loans in the third quarter of 2025 stood at 31,449 cases, down over 6,300 from 37,806 at the end of the second quarter; the amount involved decreased from HK$190.2 billion to HK$156.8 billion. Property prices are stabilizing, with negative equity issues effectively managed. Overall, the economic momentum is strong, with export surges mainly stemming from robust demand for electronics and vibrant regional trade, while internal demand expansion arises from enhanced consumer spending power.
These stellar achievements are no coincidence but the results of the SAR government's orderly implementation of measures. The government has actively developed tourism and a mega-events economy to boost visitor appeal. The Hong Kong Tourism Board continues large-scale promotions in the Mainland and overseas. September visitor arrivals neared 3.3 million, up 8% year-on-year; cumulative arrivals through September exceeded 36 million, a 12% growth. During the National Day Golden Week, inbound visitors totaled about 1.64 million, with hotel occupancy reaching 90%, signaling promising prospects for retail.
Moreover, Hong Kong has successfully attracted multiple international-level cultural, entertainment, and sports events. September's concerts by Korean artists SUPER JUNIOR, N.Flying, and SEVENTEEN drew large audiences, who not only enjoyed the performances but also spent on merchandise, driving retail, dining, and hospitality businesses and significantly enhancing Hong Kong's international image.
To promote property market recovery, the government introduced measures to ease restrictions in October 2023, with Chief Executive John Lee Ka-chiu announcing adjustments to the Special Stamp Duty (SSD), Buyer's Stamp Duty (BSD), and New Residential Stamp Duty (NRSD) in his Policy Address. In February 2024, Financial Secretary Paul Chan Mo-po further fully withdrew these curbs in the Budget, with the Monetary Authority also relaxing mortgage policies. The 2024 and 2025 Policy Addresses successively refined the New Capital Investment Entrant Scheme, easing thresholds for residential and non-residential property investments. Land Registry data show transactions for first-hand private residential units priced between HK$30 million and HK$49.99 million rose from 20 in January this year to 63 in September, surging nearly threefold to 78 in the first 20 days of October. The policies have invigorated the market, keeping negative equity issues under control.
In terms of international rankings, Hong Kong placed fifth globally and second in Asia in the 2024 World Digital Competitiveness Report, behind only Singapore. This fully reflects Hong Kong's excellence in digital transformation, innovation, and technology applications. The government's efforts in strengthening tech infrastructure, talent cultivation, and investment attraction are indispensable.
These accomplishments, hard-earned, showcase the SAR government's wisdom in accurately grasping the economic pulse and precise interventions. Facing geopolitical risks and global inflation pressures, Hong Kong's strong rebound is admirable. Looking ahead, the government should continue deepening reforms, consolidating the "one country, two systems" advantages, and further integrating into national development. Relying on the Guangdong-Hong Kong-Macao Greater Bay Area construction, Hong Kong will undoubtedly play an even more pivotal "super-connector" role, successfully linking domestic and international markets.
Friendly forces across society should actively support government policies and initiatives. Economic recovery is not merely a numbers game but concerns people's livelihoods. May we join hands to assist Hong Kong in transforming from the Pearl of the Orient into an eternal diamond, shining on the global stage!
The author is Founding Convenor of the Hong Kong Global Youth Professional Advocacy Action, a specialist in radiology, Master of Public Health of the University of Hong Kong, and an adviser of the Our Hong Kong Foundation.
The views do not necessarily reflect those of DotDotNews.
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