Hong Kong's economy expanded 4.3% year-on-year in the second quarter of 2026, according to advance government estimates released July 31 [1, 2]. This followed a 5.9% growth rate in the first quarter. However, on a quarter-on-quarter, seasonally adjusted basis, GDP declined by 0.6% from Q1 to Q2 2026 [1].
Private consumption rose 2.9% year-on-year in Q2 2026, though this was slower than the 4.9% increase seen in Q1 [1]. Total exports of goods surged 28.8%, while imports increased 29.3% during the quarter, signaling robust trade activity [1].
A government spokesman said external trade and resilient domestic demand underpinned the solid economic growth [1, 3, 2]. "Vibrant global demand for artificial intelligence-related products should bolster merchandise exports," the spokesman added, noting that service exports also stand to benefit from sustained visitor arrivals and steady demand for financial and business services [3].
The spokesman also highlighted the stability in the local labor market and solid business and consumer sentiment, saying domestic demand is expected to remain firm [3]. At the same time, risks from geopolitical tensions in the Middle East and trade protectionism by major economies require close monitoring [1, 3].
Looking ahead, the government confirmed the economy is expected to continue posting solid growth in the second half of 2026 [1]. The release of detailed GDP figures and sectoral breakdowns is anticipated with the full economic report due later this quarter.
