Hong Kong GDP Grows 4.3% in Q2

Hong Kong’s economy expanded 4.3% year-on-year in the second quarter of 2026, easing from 5.9% growth in the previous quarter and coming in slightly below expectations of 4.8%, according to preliminary estimates. Growth slowed in private consumption expenditure (2.9% vs. 4.9% in Q1) and government consumption expenditure (0.5% vs. 2.8%). Gross fixed capital formation also lost momentum, increasing 4.6% compared with an 18.3% rise in the previous quarter. Meanwhile, external demand remained a key driver of growth, with exports of goods rising to 28.8% from 23.8%, while imports of goods rose at a slightly slower pace of 29.3% after 29.9% in Q1. On a seasonally adjusted quarterly basis, GDP contracted 0.6% in Q2, reversing a 2.9% expansion in the preceding quarter and marking the first quarterly decline since the third quarter of 2022.

Hong Kong’s economy grew by 5.9% year-on-year in Q1 2026, matching preliminary estimates and accelerating from an upwardly revised 4% in Q4 2025. This marked the strongest growth since Q2 2021, driven by solid domestic demand and continued resilience in external trade. Household consumption rose to 4.9%, from 2.5% in Q4 2025, while government spending doubled to 3% from 1.5%. Gross fixed capital formation climbed to 17.7%, compared with 11.7% in the previous quarter. On the external front, exports of goods surged to 23.7%, from 15.4% in the previous quarter, supported by sustained global demand for artificial intelligence (AI)-related electronic products and buoyant regional trade flows across Asia. Imports also strengthened sharply, rising to 29.8% from 18.2%. On a seasonally adjusted quarterly basis, GDP grew by 2.9%, a five-year high, compared with 1.1% in Q4 2025. The economy is expected to remain broadly resilient, with the government keeping its GDP forecast at 2.5%–3.5%.

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.