People's Republic of China-Hong Kong Special Administrative Region

Growth in 2025 proved stronger than expected, buoyed by tech exports, the return of tourism, and a faster recovery in private consumption. Capital markets and business services benefitted from stronger demand, building on the role of Hong Kong SAR as a super-connector between the Chinese mainland and the rest of the world. However, deeper integration with the Mainland also increases exposure to related risks and competition, while weak private investment and lower labor force participation underscore remaining structural headwinds. In response, the authorities are advancing efforts to develop new growth drivers anchored in long-term investment in the Northern Metropolis to promote innovation and technology.