Geopolitical tensions in the Middle East are escalating, and the business atmosphere for small and medium-sized enterprises in Hong Kong in March has slightly weakened.

The Census and Statistics Department of the Hong Kong SAR Government today (April 14) released the results of the Monthly Survey on the Business Situation of Small and Medium-sized Enterprises (SMEs) for March 2026. The current trend index of business revenue for Hong Kong SMEs fell from 45.3 in February 2026 in the contraction zone to 44.3 in March 2026, while the outlook index for business revenue for the next month (April 2026) is 46.9. According to industry analysis, the current trend index of business revenue for most industries covered in the survey fell in March 2026 compared to the previous month, especially in the logistics industry (from 42.9 to 35.7) and the import and export trade industry (from 47.4 to 46.3). The current trend index for new orders in the import and export trade industry decreased from 47.1 in February 2026 to 46.8 in March 2026, while the outlook index for new orders for the next month (April 2026) is 47.6. A government spokesperson stated that the business atmosphere for SMEs weakened slightly in March, reflecting the impact of escalating tensions in the Middle East. The current and outlook trend indices for business revenue for SMEs have decreased slightly from the near two-year high of the previous month. However, overall employment conditions remain stable, with related indices showing slight improvement from the previous month. The spokesperson indicated that looking ahead, the tense geopolitical situation in the Middle East is expected to continue affecting the local business atmosphere, but the continued economic expansion will provide some support. The Hong Kong government has implemented short-term and targeted measures to address recent fuel price increases and will continue to closely monitor the situation.