Hong Kong's economy rose more than expected in the third quarter of this year, with gross domestic product up by 3.8 percent compared with the same period a year ago.

That's stronger than a 3.1 percent increase in the second quarter and a 2.1 percent growth in the January-March period.

Official figures released by the Census and Statistics Department on Friday also showed total exports of goods rose 12.2 percent year on year in the third quarter, compared with an 11.5 percent rise in the previous three months.

Imports climbed by 11.7 percent, compared with a 12.6 percent growth in the second period.

Private consumption expenditure rose by 2.1 percent, up from the 1.9 percent growth in the three months ending June.

"The Hong Kong economy staged a robust performance in the third quarter of 2025, driven by a continued surge in exports and sustained expansion in domestic demand," a government spokesman said in a statement.

"Looking ahead, the Hong Kong economy should see further solid growth for the rest of 2025... However, external uncertainties, especially those arising from the ongoing impacts of trade barriers on the global economy, international trade and financial conditions still warrant close monitoring."

Meanwhile, latest government figures showed retail sales in September posted a 5.9 percent increase year on year, the largest since December 2023.

Ho Lok-sang, an adjunct research professor at Lingnan University, said the third quarter GDP figures were better than expected.

"We know that IPOs are pretty much surging and there's a very good chance that we're going to rank number one in the world this year. And the stock market has been surging, and the housing prices have been very strong," he said.

"Also, we had good tourist numbers, so even though some sectors are still suffering, I think the external part [of the economy], that is exports and also services, tourism and so on, are doing pretty well.

"Private investment is rising strongly and it shows the recovery of business confidence."

Ho said he expects the positive momentum would continue in the final quarter of the year, supported by lower interest rates as well as easing trade tensions between China and the United States.