Hong Kong: 9% of respondents expect better business conditions in the first quarter of 2025 compared to the previous quarter.

On January 17, the Hong Kong government Census and Statistics Department released the results of the Quarterly Survey of Business Tendency for the first quarter of 2025. Overall, the proportion of respondents who expected better business conditions in the first quarter of 2025 compared to the previous quarter (9%) was lower than those who expected worse conditions (19%). Compared to the results of the fourth quarter of 2024, the proportion of respondents expecting better business conditions in the first quarter of 2025 was 9%, lower than the corresponding proportion in the fourth quarter of 2024 (13%). At the same time, the proportion of respondents expecting worse business conditions compared to the previous quarter increased from 16% in the fourth quarter of 2024 to 19% in the first quarter of 2025. By industry analysis, in most covered industries, overall respondents expected business conditions in the first quarter of 2025 to be worse than in the fourth quarter of 2024. Especially in the accommodation and food services, retail, and transportation, warehousing, and courier services industries, a significantly higher number of respondents expected worse business conditions in the first quarter of 2025 compared to the fourth quarter of 2024. Business/Output In most covered industries, respondents overall expected business/output in the first quarter of 2025 to decrease compared to the fourth quarter of 2024. Especially in the retail, transportation, warehousing, and courier services, and accommodation and food services industries, a higher number of respondents expected sales/business volume in the first quarter of 2025 to decrease compared to the fourth quarter of 2024. Employment In all covered industries, respondents overall expected employment to decrease or remain roughly the same in the first quarter of 2025 compared to the fourth quarter of 2024. Especially in the construction industry, more respondents expected a decrease in employment compared to those who expected an increase. Prices of Goods/Services Charges In all covered industries, respondents overall expected the prices of goods/services charges in the first quarter of 2025 to decrease or remain roughly the same compared to the fourth quarter of 2024. Especially in the construction and accommodation and food services industries, a higher number of respondents expected prices to decrease in the first quarter of 2025 compared to the fourth quarter of 2024. A spokesperson for the Hong Kong government stated that as uncertainties in the external environment increased, the business atmosphere and hiring intentions of large enterprises weakened in the first quarter. Looking ahead, the spokesperson pointed out that global economic uncertainties will continue to put pressure on the business environment. However, with multiple measures to boost the mainland economy and benefit Hong Kong, along with measures by the SAR government to stimulate the local market and inject new energy into economic development, this should be beneficial for the business atmosphere. The Hong Kong government will closely monitor the situation.