Hong Kong’s economy grew by 5.9 per cent in the first three months of 2026, its fastest quarterly growth in almost five years, the government said on Tuesday while also warning of “downside risks” from the Middle East war.
Tuesday’s preliminary first-quarter figure beat the 3.5 per cent expected by economists surveyed by Bloomberg, accelerating from 4 per cent growth in the last three months of 2025.
The figure was the strongest since the 7.6 per cent growth recorded in the second quarter of 2021.
The Chinese financial hub’s growth outlook “remains positive, underpinned by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities”, a government spokesperson said.
Hong Kong has set an annual growth target of 2.5 to 3.5 per cent for 2026.
Total exports of goods increased 23.8 per cent over the same period last year, with imports rising 29.9 per cent.
Private consumption expenditure increased by 5 per cent.
However, officials warned that the “persistent tensions in the Middle East pose downside risks to the economic outlook” and said they had taken steps to safeguard the stability of energy supplies.
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The government said it would “stay vigilant” as surging global oil prices put pressure on the import-dependent city.
Hong Kong’s growth reflects “the recovery of China’s economy as well as the improvement of the geopolitical environment China faces”, Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.
The conflict in the Middle East shows the importance of safety and stability for financial centres, said Zhang, who expected Hong Kong to sustain its strong momentum this year.
AFP
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