Hong Kong's Balance of Payments and International Investment Position statistics for second quarter of 2025
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I. Balance of Payments
Hong Kong recorded a BoP surplus of $105.5 billion (13.4% of Gross Domestic Product (GDP)) in the second quarter of 2025. Reserve assets correspondingly increased by the same amount. This was against a BoP deficit of $85.4 billion (10.7% of GDP) in the first quarter of 2025.
Current account
The current account recorded a surplus of $92.6 billion (11.8% of GDP) in the second quarter of 2025. This reflects that Hong Kong's savings was greater than its investment, enabling Hong Kong to accumulate external financial assets (such as equity securities or debt securities) as a buffer against global financial volatilities. Compared with the current account surplus of $98.5 billion (13.0% of GDP) in the second quarter of 2024, the decrease in surplus was mainly due to the increase in goods deficit, largely offset by the increase in net inflow of primary income.
The goods deficit increased to $38.0 billion in the second quarter of 2025, compared with $14.1 billion in the same quarter of 2024. Over the same period, the services surplus increased slightly from $27.5 billion to $30.0 billion. The primary income inflow and outflow amounted to $624.6 billion and $517.6 billion respectively, thus yielding a net inflow of $107.0 billion in the second quarter of 2025, compared with a net inflow of $90.2 billion in the same quarter of 2024.
Financial account
An overall increase in financial non-reserve assets amounting to $21.1 billion (2.7% of GDP) was recorded in the second quarter of 2025, compared with an overall increase of $245.8 billion (30.7% of GDP) in the first quarter of 2025. The overall increase recorded in the second quarter of 2025 was due to the net increase in portfolio investment, largely offset by the net decreases in other investment, direct investment and financial derivatives.
In the second quarter of 2025, reserve assets increased by $105.5 billion, as against a decrease of $85.4 billion in the first quarter of 2025.
II. International Investment Position
At the end of the second quarter of 2025, both Hong Kong's external financial assets and liabilities stood at a very high level, amounting to $57,244.3 billion (17.7 times of GDP) and $38,879.7 billion (12.0 times of GDP) respectively, a typical feature of a prominent international financial centre.
Hong Kong's net external financial assets (i.e. assets minus liabilities) amounted to $18,364.7 billion (5.7 times of GDP) at the end of the second quarter of 2025, compared with $16,922.9 billion (5.3 times of GDP) at the end of the first quarter of 2025. Hong Kong's net external financial assets to GDP ratio is one of the largest in the world, which provides the economy with a strong cushion against sudden external shocks.
III. External Debt
At the end of the second quarter of 2025, Hong Kong's gross ED amounted to $15,463.6 billion (4.8 times of GDP). Compared with $14,948.8 billion (4.7 times of GDP) at the end of the first quarter of 2025, gross ED increased by $514.8 billion. This was attributable to the increases in ED of all sectors, in particular the banking sector, intercompany lending in direct investment and other sectors.
As one of the world's major financial centres, Hong Kong has a significant amount of ED held against the local banking sector arising through normal banking businesses. At the end of the second quarter of 2025, 53.1% of Hong Kong's ED was attributable to the banking sector. Other ED mainly consisted of ED of other sectors (29.1%) and debt liabilities in direct investment (intercompany lending) (16.6%).
Further information
BoP is a statistical statement that systematically summarises, for a specific time period (typically a year or a quarter), the economic transactions of an economy with the rest of the world (i.e. between residents and non-residents).
IIP is a balance sheet showing the stock of external financial assets and liabilities of an economy at a particular time point. The difference between the total value of external financial assets and liabilities is the net IIP of the economy, which provides a measure of net financial claims on non residents plus gold bullion held as monetary gold.
Gross ED, at a particular time point, is the outstanding amount of those actual current, and not contingent, liabilities that are owed to non-residents by residents of an economy and that require payment of principals and/or interests by the debtors at some time points in the future.
Table 1 presents Hong Kong's BoP. Table 2 presents the detailed current account and capital account, while Table 3 presents the detailed financial account. Table 4 shows Hong Kong's IIP, and Table 5 shows Hong Kong's ED.
Statistics on BoP, IIP and ED for the second quarter of 2025 are preliminary figures, which are subject to revision upon the availability of more data.
The latest statistical tables of BoP (including seasonally adjusted current account), IIP and ED can be downloaded at the website of the C&SD (www.censtatd.gov.hk/en/scode260.html). Analysis of the statistics, together with the conceptual and methodological details, are presented in the publication Balance of Payments, International Investment Position and External Debt Statistics of Hong Kong, Second Quarter 2025 published by the C&SD. Users can download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040001&scode=260).
For enquiries about the BoP, IIP and ED statistics, please contact the Balance of Payments Section of the C&SD (Tel: 3903 6979 or email: bop@censtatd.gov.hk).
Ends/Friday, September 19, 2025
Issued at HKT 16:30
Issued at HKT 16:30
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