Hong Kong’s economic prospects and business confidence are expected to strengthen further in 2025, according to CPA Australia’s latest survey.

More than half of respondents anticipate revenue growth for their companies next year, driving more ambitious expansion plans and the highest hiring expectations since 2020.

Executives and accounting professionals surveyed express a relatively optimistic view of Hong Kong’s economy, with 63% expecting growth in 2025.

The city’s tax system (31%) is seen as the biggest positive factor for its economic and business environment, while shifting consumer patterns (26%) and US-China tensions (26%) are considered the top challenges. Additionally, 56% of respondents rate Hong Kong’s international competitiveness as high.

“The survey findings reflect that Hong Kong’s economy and business confidence are expected to steadily improve in the coming year,” said Mr. Cliff Ip, CPA Australia 2024 Divisional President of Greater China.

“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,” he added.

Furthermore, the outlook for initial public offerings (IPOs) in Hong Kong remains positive, with 63% of respondents expecting an increase in funds raised through IPOs 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 stated.

The positive economic sentiment is reflected in revenue forecasts and business expansion plans for 2025. 51% of respondents expect their company’s revenue to grow next year, with the most common forecast being an increase of 5 to 20%.

To support growing revenue and expansion plans, companies are eager to hire more employees and raise salaries to retain talent. 57% of respondents expect their companies to increase headcount, marking the highest hiring intention since 2020. Larger companies have the strongest hiring plans. In addition, 62% of respondents anticipate a salary increase in 2025.

CPA Australia gathered 568 responses from Hong Kong-based executives and accounting and finance professionals across various industries in October and November for the 2025 Hong Kong Economic and Business Sentiment Survey.