Hong Kong Raises 2025 Growth Forecast to 3.2% as City Bets on Finance, Technology and Trade

BY COMFORT OGBONNA

Hong Kong Financial Secretary Paul Chan has raised the city’s economic growth forecast for 2025 to 3.2%, expressing confidence that the economy will maintain its momentum as the government strengthens Hong Kong’s position as a global financial centre, innovation hub and international trade gateway.

The revised outlook marks an improvement from the earlier projection made in February, when growth was estimated at between 2% and 3%.

Chan said the improved forecast reflects the city’s solid economic performance and its growing appeal to global investors and businesses. Hong Kong has emerged as the world’s largest venue for initial public offerings this year, a development that underscores renewed confidence in its capital markets.

According to Chan, the city plans to attract more company listings, particularly from fast-growing regions such as Southeast Asia and the Middle East, while continuing to play a key role in promoting the international use of China’s yuan.

Beyond capital markets, the government is placing strong emphasis on technology-driven growth. Chan noted that Hong Kong will prioritise the development of artificial intelligence and biotechnology, with the aim of taking a leading role in the global technology race. He described artificial intelligence as a future-defining industry that will shape economic competitiveness and transform the global economic landscape in the years ahead.

Trade will remain another major pillar of growth, with Hong Kong seeking to deepen its role as a bridge between China and the rest of the world. Chan said the city will step up efforts to help more Chinese companies expand overseas, including the establishment of a centre focused on cross-border supply chain management and trade finance. This initiative is intended to provide stronger support for Chinese firms as they grow their international footprint.

Looking ahead, Chan said Hong Kong’s economy is expected to sustain its positive growth trend into next year, driven by finance, technological innovation and trade. These sectors, he added, will serve as the city’s key engines of growth as Hong Kong aligns itself more closely with China’s broader development strategy.

Hong Kong’s strong performance this year is also reflected in its stock market, with the Hang Seng Index rising about 30%, making it one of the world’s best-performing major indices. Chan attributed the better-than-expected economic results to resilient exports, strong fixed-asset investment and a recovery in consumer spending.

To further enhance its standing as a financial hub, the government plans to boost the competitiveness of the stock market while expaagnding activities across a wide range of financial services. These include bonds, the money market, financial technology, commodities and gold trading, all of which are expected to contribute to a more diversified and resilient financial ecosystem for the city.