Hong Kong Economic Data & Projections

Hong Kong Economic Outlook

Financial hub:

Hong Kong is one of the world's most important financial centers, with a highly open, trade-dependent economy and a robust regulatory framework. It serves as a gateway between China and global markets, benefiting from low taxes, free trade policies, and a world-class financial sector. The Hong Kong Stock Exchange is one of the largest in the world, and the city's banking system is well-capitalized. Despite political changes in recent years, Hong Kong retains a separate legal and economic system under the “One Country, Two Systems” framework—though its autonomy has weakened.

Trade and logistics:

Hong Kong has long thrived as a global logistics and trade hub due to its strategic location and world-class port facilities. It ranks among the busiest container ports globally and maintains one of the highest trade-to-GDP ratios in the world. However, competition from mainland Chinese ports—particularly Shenzhen and Shanghai—has eroded Hong Kong’s relative importance in global trade. The city’s extensive free trade agreements, including its status as a separate customs territory under the WTO, remain key advantages.

Economic challenges:

Hong Kong's economy faces headwinds from geopolitical uncertainties, declining foreign investment due to concerns over its legal and political environment, and the slowdown in China’s economy. The Covid-19 pandemic hit the city hard, with prolonged restrictions stifling tourism and business activity. Additionally, the ongoing emigration of skilled workers and rising living costs pose longer-term structural risks. The property market remains a double-edged sword—high real estate prices support government revenues but create affordability issues and economic volatility.

Hong Kong's economic outlook:

The economy of Hong Kong is expected to remain heavily dependent on financial services, trade, and tourism, though diversification efforts into innovation and technology are underway. Growth is likely to be moderate in the coming years as China’s economic deceleration, capital outflows, and geopolitical shifts weigh on business sentiment. However, Hong Kong’s strategic location, deep capital markets, and low-tax regime should keep it relevant as a global business hub—provided it can maintain investor confidence.

Hong Kong's Macroeconomic Analysis:

Nominal GDP of USD 407 billion in 2024.

Nominal GDP of USD 381 billion in 2023.

Nominal GDP of USD 407 billion in 2024.

GDP per capita of USD 53,877 compared to the global average of USD 10,589.

GDP per capita of USD 50,591 compared to the global average of USD 10,589.

GDP per capita of USD 54,009 compared to the global average of USD 10,589.

Average real GDP growth of 1.3% over the last decade.

Average real GDP growth of 1.3% over the last decade.

Average real GDP growth of 1.3% over the last decade.

Sector Analysis

In 2022, services accounted for 91.0% of overall GDP, manufacturing 0.9%, other industrial activity 8.0%, and agriculture 0.1%. Looking at GDP by expenditure, private consumption accounted for 70.3% of GDP in 2023, government consumption 13.2%, fixed investment 15.7%, and net exports 0.8%.

International trade

In 2023, manufactured products made up 88.8% of total merchandise exports, mineral fuels 0.1%, food 1.5%, ores and metals 2.2% and agricultural raw materials 0.0%, with other categories accounting for 7.4% of the total. In the same period, manufactured products made up 82.9% of total merchandise imports, mineral fuels 2.2%, food 3.6%, ores and metals 1.5% and agricultural raw materials 0.1%, with other goods accounting for 9.7% of the total. Total exports were worth USD 583.10 billion in 2024, while total imports were USD 631.50 billion.