Key facts
- Hong Kong's economy grew 4.3% year-on-year in the second quarter.
- This marks the 14th consecutive quarter of economic growth for the city.
- The growth was driven by strong external trade and resilient domestic demand.
- GDP decreased by 0.6% quarter-on-quarter in the second quarter.
- The government anticipates solid growth in the second half of 2026.
Hong Kong's economy expanded 4.3% from a year earlier in the second quarter, marking the 14th consecutive quarter of growth. This performance was underpinned by buoyant external trade and resilient domestic demand. The growth rate was slightly below the mean forecast of 4.4% from 15 economists polled by Reuters, and a decrease from the 5.9% growth recorded in the first quarter. In a quarter-on-quarter comparison, GDP saw a seasonally adjusted decrease of 0.6% in real terms.
A government spokesman expressed optimism for solid growth in the second half of 2026, anticipating that demand for artificial intelligence-related products would boost merchandise exports. Exports of services are expected to benefit from sustained visitor arrivals and steady demand for financial and business services. However, the spokesman cautioned that geopolitical tensions in the Middle East and trade protectionist measures require close monitoring.
Private consumption expenditure increased by 2.9% in the second quarter, a slowdown from the revised 4.9% increase in the first quarter. Total exports of goods saw a significant jump of 28.8% in the second quarter, compared to 23.8% growth in the first quarter. Imports of goods also climbed, rising 29.3% in the second quarter, slightly down from a 29.9% increase in the first quarter.