Standard Chartered Bank's report highlights a cautiously optimistic outlook for Hong Kong's economy, driven by financial services and a recovery in private consumption. GDP growth is projected at 3.5% for 2025, up from 2.6% in 2024, with expectations of continued growth in cross-border spending. The housing market appears stabilized, although risks from global uncertainties remain.

Growth driven by financial services

"We maintain our 2026 GDP growth forecast at 2.5%, with global uncertainties posing risks to growth."

"We are cautiously optimistic on the outlook for 2026. As a small and open economy, Hong Kong is susceptible to the global currents, including prevalent geopolitical risks, trade policy uncertainty, and the prospect of Fed rate moves."

"That said, we expect financial services to remain a bright spot and private consumption to continue to recover, along with a steady labour market."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)