Hong Kong's economic outlook and business confidence are projected to improve further in 2025, according to CPA Australia's latest survey.
Over half of the respondents expect their company's revenue to grow in the coming year, signalling a more aggressive approach to expansion. Hiring intentions are also at their highest levels since 2020.
Executives and accounting professionals surveyed express a relatively positive outlook for Hong Kong's economy, with 63% forecasting growth in 2025. The city's tax system (31%) is seen as the most significant positive factor contributing to its economic and business environment, while shifts in consumer behaviour (26%) and tensions in US-China relations (26%) are identified as the primary challenges. Additionally, 56% of respondents rated 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. 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,” said Cliff Ip, CPA Australia 2024 Divisional President of Greater China.
“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,” he added.
Furthermore, the outlook for initial public offerings (IPOs) in Hong Kong is also positive, with 63% of respondents anticipating an increase in the value of 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 translating into optimistic revenue projections 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 between 5 to 20%.
To support their growing revenue and expansion plans, companies are eager to hire more employees and raise salaries to retain talent. Indeed, 57% of respondents anticipate their companies will increase headcount, marking the highest level of new hiring intentions since 2020, which are particularly strong among larger companies.
In addition, salaries are expected to rise, with 62% of respondents expecting a salary increase in 2025
CPA Australia gathered 568 responses from Hong Kong-based executives in October and November, as well as accounting and finance professionals across various industries, for its Hong Kong Economic and Business Sentiment Survey 2025.