Hong Kong's economy grew for the fifth straight month in December 2025, fueled by AI-driven demand in electronics and strong trade, with forecasts for 2.3% GDP growth in 2026.

Hong Kong's economy expanded for a fifth consecutive month in December 2025, with the S&P Global PMI at 51.9, driven by rising demand in electronics and semiconductors linked to artificial intelligence, strong trade performance, and increased IPO activity. Backlogs of work rose for the first time in a year, signaling future growth potential. The property market showed stabilization, though retail sales remained weak as consumers shifted spending to mainland China. Economists from ING, Natixis, and UBS expressed optimism, with UBS forecasting 2.3% GDP growth for 2026—above consensus—citing broad-based recovery, though geopolitical risks and changing global interest rate policies could pose challenges.