Hong Kong’s economy has maintained its growth momentum for three consecutive years, with the latest government estimates putting gains for 2025 at 3.5 percent.

That outperformed earlier government predictions of between two and three percent, and was higher than the 2.6 percent growth seen in 2024.

Official advanced data released by the Census and Statistics Department on Friday also showed that growth picked up in the fourth quarter, with gross domestic product expanding 3.8 percent year on year, higher than the 3.7 percent seen in the third quarter.

On a seasonally adjusted quarter-to-quarter basis, real gross domestic product grew by one percent.

In commenting on the data, a government spokesman said a main driver of growth was exports, which rose by 12 percent in real terms year on year in 2025, boosted by strong demand for electronic-related products amid "buoyant" trade flows in Asia.

Exports of services also rose, up by 6.3 percent in real terms in 2025.

Private consumption expenditure returned to positive territory, rising by 1.6 percent in real terms for the year, following improved sentiment since the second quarter last year.

"Looking ahead, the Hong Kong economy is expected to maintain good momentum in 2026," the spokesman said.

"Sustained moderate expansion of the global economy, coupled with persistently strong global demand for artificial intelligence-enabled, electronic-related products will lend support to Hong Kong's export performance.

"Domestically, improving consumer and business sentiment, together with the expected further interest rate cuts in the United States, will benefit consumption and investment activities."

Commenting on the latest figures, economist Iris Pang said exports "contributed a lot more than expected" to the overall economy, as shipments soared amid the front-loading demands due to the tariffs imposed by the Trump administration.

"Another thing that is really unexpected is the pick-up of trade of services, like financial products from mainland buyers in Hong Kong. They buy a lot of insurance and wealth products. This will also be a continuous growth factor for 2026," she said.

"At the end of the year, in Q4, we had quite strong fixed-capital formation. Put it simply, it is investment by the private sector. So mainly I believe it's [research and development] money on technology," Pang added.

She expects GDP growth in 2026 to reach 3.2 percent.