Hong Kong’s economy expanded 3.8 per cent from a year earlier in the fourth quarter, official advance estimates showed on Friday, the 12th consecutive quarter of growth thanks to buoyant regional trade flows, growth in inbound tourism and financial service activities.

Hong Kong’s economy grew a revised 3.7 per cent in the third quarter, 3.1 per cent growth in the second and 3.0 per cent in the first quarter of 2025.

For the whole of 2025, real GDP posted growth of 3.5 per cent, compared to 2.5 per cent in 2024. That exceeded the government’s forecast of 3.2 per cent growth for the year.

“Looking ahead, the Hong Kong economy is expected to maintain good momentum in 2026,” a government 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.”

On a seasonally adjusted quarterly basis, the economy expanded 1.0 per cent in October-December, the data showed. That compared with 0.7 per cent in July-September, 0.4 per cent in April-June and 1.8 per cent in January-March.

Improving consumer and business sentiment and expected further interest rate cuts in the U.S. will benefit consumption and investment activities, while external uncertainties persist amid escalating geopolitical tensions, the spokesman added.

Private consumption expenditure increased by 2.5 per cent in the fourth quarter, compared with a 2.4 per cent rise in the third quarter, and it was up 1.6 per cent for 2025.

Total exports of goods increased 15.5 per cent in the fourth quarter, compared with the third quarter’s 12 per cent rise, and it was up 12 per cent for 2025.

Imports of goods grew 18.4 per cent, compared with an 11.7 per cent rise in the third quarter. It was up 12.6 per cent for 2025.