- media@moneyinfocus.news
Hong Kong’s economy expanded 5.9% year-on-year in the first quarter of 2026, significantly exceeding market expectations of 3.5% and accelerating from a revised 4.0% growth in the fourth quarter of 2025, according to preliminary estimates released by the Census and Statistics Department.
The latest figures mark the city’s strongest economic performance since the second quarter of 2021, supported by a broad-based recovery across domestic demand, investment, and external trade.
Household consumption rebounded notably, rising 5.0% in the first quarter compared with 2.5% in the previous quarter. Government spending also contributed to growth, increasing 2.9% from 1.5% in the final quarter of 2025.
Investment activity showed a sharp acceleration, with gross fixed capital formation surging 17.7%, up from 11.7% previously—pointing to renewed business confidence and capital deployment across key sectors.
External demand remained a key driver of the expansion. Exports of goods climbed 23.8%, compared with 15.4% in the prior quarter, while imports rose 29.9%, up from 18.2%.
The synchronized increase in exports and imports underscores the territory’s continued role as a major global trade hub, benefiting from resilient regional demand and improving global supply chain conditions.
On a seasonally adjusted basis, Hong Kong’s GDP grew 2.9% quarter-on-quarter, marking a five-year high and a significant jump from a revised 1.1% increase in the previous quarter.
The data suggests a strengthening economic trajectory entering 2026, as both domestic and external sectors contribute to the expansion.
While the stronger-than-expected performance highlights improving economic momentum, the sustainability of growth will likely depend on external conditions, including global trade dynamics, financial market stability, and regional demand trends.
