Business outlook dim in Q1 amidst global uncertainties

All sectors expect their employment to decrease.

The proportion of business owners expecting a better business situation in Q1 2025 is at 9%, down from 13% in Q4 2024 whilst those expecting a worse business situation rose by 3% to 19%, according to the Census and Statistics Department.

Most respondents expect their business situation to worsen in balance, especially in the accommodation and food services, retail, and transportation sectors.  

Further, all sectors expect their employment to decrease or remain broadly unchanged during the period, particularly the construction sector.

Moreover, all sectors expect their service charges to decrease on balance with a highlight on the construction, accommodation and food services sectors.

A  government spokesman said that business sentiment and hiring appetite amongst large enterprises weakened in the first quarter amidst increased global uncertainties.

Despite this, the spokesman said the various measures by the Mainland and Hong Kong will boost market sentiment and create new impetus for economic development.