Q1 GDP growth hits near 5-year high

The Hong Kong economy expanded at its fastest pace in almost five years in the first quarter. Advance estimates released by the Census and Statistics Department on Tuesday showed the city's gross domestic product jumped 5.9 percent year on year in real terms in the first three months of the year. That was also stronger than the 4 percent growth in the fourth quarter of 2025. First-quarter growth was boosted in part by exports, which rose by 23.8 percent from a year ago and 15.4 percent from the October-December quarter. Gross domestic fixed capital formation also helped lift the economy during the period, rising by 17.7 percent year on year in real terms, after an 11.7 percent growth in the fourth quarter. Both private and government consumption expenditure rose as well, with private spending up 5 percent year on year and government consumption 2.9 percent higher. Commenting on the figures, a government spokesperson noted that the local economy "expanded robustly" in the first quarter of 2026, adding that the outlook remains positive, thanks to strong global demand for AI-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities. "Relatively solid business and consumer sentiment is expected to continue supporting domestic demand. However, persistent tensions in the Middle East pose downside risks to the economic outlook," the spokesperson said. "The government has taken targeted measures to safeguard energy supply stability and mitigate the impacts on affected sectors," the spokesperson added, noting that the authorities would closely monitor the risks. Edited by Edmond Fong