Surveyed executives and accounting professionals show a relatively optimistic outlook for Hong Kong’s economy, with 63 per cent anticipating the local economy will grow next year. Hong Kong’s tax system (31 per cent) ranks as the largest positive contributor to the city’s economic and business environment in 2025, while changes in consumer patterns (26 per cent) and tension in US-China relations (26 per cent) are seen to be the two biggest challenges. 56 per cent of respondents rated Hong Kong’s international competitiveness as high.
Mr. Cliff Ip, CPA Australia 2024 Divisional President of Greater China, said, “The survey findings reflect that Hong Kong’s economy and business confidence are expected to steadily improve in the coming year. Recent stimulus measures unveiled by the central government and the Hong Kong government have contributed to this improved sentiment. The start of the rate-cutting cycle has also boosted business confidence. These positive factors should keep this momentum going into 2025 and strengthen Hong Kong’s international competitiveness.
“However, external uncertainties still weigh on some sectors such as tourism and retail. Respondents indicate that changing customer behaviour and weak customer demand are some of the key challenges they expect to face in 2025. In response, companies must keep innovating their products and services, and how they deliver them. They also need to frequently engage with customers and potential customers to better understand trends both in Hong Kong and elsewhere.”
The outlook for initial public offerings (IPOs) in the city is also optimistic. Some 63 per cent of respondents expect the value of funds raised in Hong Kong through IPOs to increase in 2025. “IPO activity in Hong Kong has shown signs of recovery since Q3 due to some mega-sized IPOs. Policies and regulatory reforms are stimulating capital activities and boosting investor confidence,” Ip explained.
The improving economic sentiment is flowing through to revenue projections and business expansion plans in 2025. 51 per cent of respondents predict their company’s revenue will grow next year, with an increase in revenue of between 5 to 20 per cent being the most popular prediction.
In response to this improving business environment, respondents are most likely to forecast that their company will increase their investment in advanced technologies (38 per cent), sales and marketing (37 per cent) and expansion outside of Hong Kong (36 per cent). A notably high proportion of respondents to this survey stated that their company has expansions plan in the next three years at home or abroad, with mainland China (40 per cent) again nominated as the most popular destination.
Though cost management remains the top strategic focus for many companies, the percentage choosing it has dropped from 39 per cent in 2024 to 27 per cent in 2025. While slightly more are expected to focus on market expansion activities (27 per cent) and innovation and digitalisation (26 per cent).
Ip stated, “The more positive business environment is being reflected in an expected shift in corporate strategy away from defensive strategies such as cost management and improving business efficiency towards more expansionary strategies such as market expansion and innovation.”
To support growing revenue and expansion plans, companies are keen to add more employees and increase salary to retain talent. 57 of per cent respondents expect that their companies to increase headcount, the highest new hiring intention since 2020. These new hiring intentions are strongest amongst larger companies. Salaries are expected to grow, with 62 per cent expecting to receive a salary increase in 2025.
While the economy looks to be on a positive trajectory, predictions for price changes in the property market in 2025 are uncertain, with similar numbers of respondents expecting prices to increase and decrease, however more respondents expect prices to increase than the previous two years.
Ip explained, “The city’s property market is recovering, with demand gradually growing. This is due to recent interest rate cuts and changes in government policies such as the relaxation of restrictive measures in the housing market. However, with sectors such as SMEs undergoing a relatively slower recovery due to the weak domestic demand, this is leading to stagnation in the rental market.”
The survey data shows nearly all Hong Kong companies have introduced at least some ESG measures into their operations, with only three per cent stating they have not taken any ESG actions. Another 35 per cent expect their company to increase their ESG-related initiatives and activities next year. Respondents were most likely to nominate compliance and increasing compliance costs as the biggest impact ESG is having on their business.
CPA Australia collected 568 responses from Hong Kong-based executives, accounting and finance professionals working in various industries in October and November for this Hong Kong Economic and Business Sentiment Survey 2025.
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CPA Australia
CPA Australia is one of the largest professional accounting bodies in the world, with more than 173,000 members in over 100 countries and regions, including more than 22,500 members in Greater China. CPA Australia has been operating in Hong Kong since 1955 and opened our Hong Kong office in 1989. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on issues affecting the accounting profession and the public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
