Hong Kong’s economy kicked off 2026 with its fastest growth in almost five years, with advance figures showing first‑quarter GDP expanding 5.9 percent in real terms from a year earlier.
The reading, published by the Census and Statistics Department on Tuesday, marks a clear step up from the revised 4 percent growth recorded in the final quarter of 2025 and signals that the city’s post‑pandemic recovery is broadening beyond consumption alone.
On a seasonally adjusted basis, real GDP grew 2.9 percent quarter‑on‑quarter, the strongest three‑month performance since 2021, underscoring the momentum that had already been flagged by Financial Secretary Paul Chan in his recent blog posts.
A government spokesperson described the overall picture as a “robust” expansion, citing a powerful rebound in external trade, resilient domestic demand and solid growth in visitor arrivals.
Exports were the standout driver. Merchandise exports surged by close to 30 percent in value terms in the first two months of the year, supported by renewed global demand for electronic products and reconfigured regional supply chains, before staying strong into March.
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Official commentary highlights particularly brisk orders in electronics linked to AI applications, reinforcing Hong Kong’s role as a logistics and financial hub for tech‑related trade rather than a production base. Imports also rose sharply as re‑exports and local investment picked up, reflecting the city’s position as an entrepôt for the Greater Bay Area.
Domestic demand added a second pillar. Private consumption was estimated to have grown by around 5 percent year‑on‑year in the quarter, up from 2.5 percent in late 2025, helped by a full calendar of government‑backed “mega events” as well as a steady return of live entertainment and conferences.
Visitor arrivals exceeded 14.3 million in the first three months, and officials now expect total tourist numbers for 2026 to surpass an earlier forecast of 53.8 million, lifting spending in retail, catering, hotels and transport.
Looking ahead, the government says risks remain from geopolitical tensions, higher oil prices and uneven recoveries in key export markets.
Still, with first‑quarter growth already at the top end of that band, the administration argues that strong external demand for AI‑related electronics, robust cross‑boundary financial activity and further integration with the Greater Bay Area should continue to support Hong Kong’s economy in the coming quarters.
