Hong Kong’s Economy Expands Robustly by 5.9% in Q1 2026, Marking Highest Growth in Nearly Five Years

HONG KONG (May 5, 2026) – The Census and Statistics Department (C&SD) today released advance estimates showing that Hong Kong’s Gross Domestic Product (GDP) grew by 5.9% in real terms in the first quarter of 2026 compared to a year earlier. This represents a significant acceleration from the revised 4.0% growth recorded in the preceding quarter and stands as the strongest quarterly performance since Q2 2021.

Key Growth Drivers

The robust expansion was propelled by a surge in external demand and resilient domestic spending:

• Merchandise Exports: Total exports of goods jumped 23.8% in real terms, driven by insatiable global demand for artificial intelligence (AI)-related electronics and high-tech components.
  
• Private Consumption: Household spending increased by 5.0%, supported by a stable labor market and improving consumer confidence.
  
• Investment Expenditure: Gross domestic fixed capital formation surged by 17.7%, reflecting strong business sentiment and increased technology adoption.
  
• Tourism & Services: Inbound tourism remained a “staunch support,” with visitor arrivals and related service exports continuing their upward trajectory.
  

Government Commentary

A government spokesperson noted that the economy has entered a phase of “comprehensive recovery.” On a seasonally adjusted quarter-to-quarter basis, real GDP rose by 2.9%.

“While the near-term outlook remains positive, we must remain vigilant,” the spokesperson added. “Persistent geopolitical tensions in the Middle East pose potential downside risks to global trade flows and energy price stability”.

Looking Ahead

The HKSAR Government maintains a cautiously optimistic forecast for the remainder of 2026, with real GDP growth projected between 2.5% and 3.5% for the full year. Detailed Q1 statistics and revised forecasts will be released on May 15, 2026.