Hong Kong Q1 GDP Hits Near 5-Year High

Hong Kong’s economy expanded 5.9% year-on-year in the first quarter of 2026, comfortably beating market expectations of 3.5% and accelerating from an upwardly revised 4.0% in Q4 2025, preliminary estimates showed. It marked the strongest economic growth since Q2 2021, supported by expansion across domestic and external demand. Household consumption jumped to 5% from 2.5% in Q4 2025, while government spending increased to 2.9% from 1.5%. In addition, gross fixed capital formation surged 17.7%, compared with 11.7% in the prior period. External trade also provided a significant boost, as exports of goods jumped to 23.8% from 15.4%, while imports climbed to 29.9% from 18.2%. On a seasonally adjusted quarterly basis, GDP grew to a five-year high of 2.9%, compared with an upwardly revised 1.1% in the preceding quarter.

Hong Kong’s economy grew by 3.8% year-on-year in the fourth quarter of 2025, following a revised 3.7% expansion in the previous quarter, and matching preliminary estimates. Private consumption rose 2.7%, up from 2.4%, while overall investment surged 10.5%, compared with 3.4%, reflecting stronger consumer confidence and an improved business outlook. In contrast, government spending slowed to 1.4% from 2% in Q3. On the trade front, goods exports climbed 15.5% from 12%, while service exports eased to 4.8% from 6.6%. Meanwhile, goods imports increased 18.4% from 11.7% and service imports rose 3.7% from 2.3%. On a seasonally adjusted quarterly basis, the GDP rose 1% from an upwardly revised 0.9%. For the full year, Hong Kong’s economy expanded 3.5%, up from 2.6% in 2024.

Hong Kong’s economy expanded by 3.8% year-on-year in the fourth quarter of 2025, following a downwardly revised 3.7% growth in the third quarter, preliminary data showed. This was the strongest growth since the fourth quarter of 2023, supported by robust regional trade, sustained growth in inbound tourism and financial service activities. On the expenditure side, increases were seen in private consumption (2.5% vs 2.4% in Q3) and gross fixed capital formation (10.9% vs 3.4%). Government spending also rose, albeit at a slower pace (1.4% vs 2%). Meanwhile, on net trade, export growth (15.5% vs 12%) was outpaced by imports (18.4% vs 11.7%). On a seasonally adjusted quarterly basis, GDP rose by 1% in the December quarter, following an upwardly revised 0.9% increase in the previous period. For 2025 as a whole, GDP grew by 3.5%, accelerating from a 2.6% rise in 2024 and marking the third consecutive year of expansion. That surpassed the government’s forecast of a 3.2% increase.