Hong Kong recorded a strong economic expansion of 5.9 per cent in the first quarter of 2026, marking its fastest quarterly growth in almost five years, according to government data released on Tuesday.
The figure surpassed economists’ expectations of 3.5 per cent and accelerated from 4 per cent growth recorded in the final quarter of 2025. It is also the strongest performance since the 7.6 per cent growth recorded in the second quarter of 2021.
A government spokesperson said the outlook remains positive, driven by strong global demand for artificial intelligence-related electronics, rising visitor arrivals, and increased cross-border financial activity.
“Total exports of goods increased 23.8 per cent over the same period last year, with imports rising 29.9 per cent,” the report stated, while private consumption expenditure rose by 5 per cent.
However, authorities warned that geopolitical tensions, particularly the ongoing war in the Middle East, pose “downside risks” to the economic outlook. Officials also noted concerns over rising global oil prices, given the city’s dependence on imports, and said steps are being taken to safeguard energy stability.
Hong Kong has set a 2026 annual growth target of between 2.5 and 3.5 per cent, suggesting current performance is running ahead of expectations.
The strong performance also reflects broader regional economic trends, including the recovery of China and increased global demand for technology exports.
Economist Zhiwei Zhang noted that Hong Kong’s growth is supported by both China’s economic recovery and improved geopolitical conditions, adding that the city is likely to maintain strong momentum if global risks remain contained.
He also highlighted that ongoing instability in the Middle East underscores the importance of stability for global financial hubs, particularly those heavily reliant on energy imports and international trade flows.
Despite external risks, officials expressed confidence that sustained trade performance and financial sector activity would continue to support growth through 2026.
