Robust trade figures and an increase in investment contributed to Friday's figure, which is higher than the government's growth goal for the year and beat a Bloomberg projection of 3.2 percent.

The financial hub's good performance came despite what a government statement called "external uncertainties... given escalating geopolitical tensions".

"Sustained moderate expansion of the global economy, coupled with persistently strong global demand for artificial intelligence-enabled electronic-related products will lend support to Hong Kong's export performance," the statement said.

The demand for electronic-related products, as well as "buoyant regional trade flows in Asia", saw last year's total exports of goods increase by 12 percent over 2024, it added.

Imports of goods rose 12.6 percent compared to 2024, while exports of services rose 6.3 percent, supported by sustained growth in inbound tourism and cross-boundary financial activities.

Meanwhile capital inflows to Hong Kong's stock exchange made it one of the world's most active financial markets in 2025.

Both the capital and property markets saw increases in price and volume in the city last year, officials said.

Personal consumption was up 1.6 percent on-year.

The city's economy is expected to maintain "good momentum" in 2026, the government statement said.

But Standard Chartered Bank said in its outlook that Hong Kong's exports of goods was "likely to decelerate" this year thanks to the payback effects from front-loading activities.

"The geopolitical landscape is not only changing global asset allocation strategies, but also fundamentally reshaping global trade patterns," Financial Secretary Paul Chan warned in an article earlier this month.

He added that the city "must accelerate the upgrading and transformation" of the trade ecosystem.