Hong Kong Confirms Q2 GDP Growth at 4.3%

Hong Kong's economy expanded 4.3% year-on-year in the second quarter of 2026, matching preliminary estimates but slowing from 5.9% in the previous quarter. The moderation was driven by softer domestic demand, with household consumption growth easing to 2.8% from 4.9% in the first quarter. Government spending was flat after rising 2.8%, while gross fixed capital formation slowed sharply to 4.4% from 18.3%. In contrast, external demand remained the primary engine of growth. Exports of goods accelerated to 28.9% from 23.8%, while exports of services edged up to 3.4% from 3.3%. Meanwhile, growth in imports of goods eased slightly to 29.3% from 29.9%, while imports of services slowed to 3.0% from 3.8%. On a seasonally adjusted quarterly basis, the economy tumbled 0.6%, reversing a 2.9% expansion in the previous three months and marking Hong Kong's first quarter-on-quarter economic contraction since the second quarter of 2022.

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%.