Hong Kong's economy expanded 5.9% year-on-year in Q1 2026, its fastest quarterly growth in nearly five years and surpassing Financial Secretary Paul Chan's forecast of over 4%. Driven by private consumption and government spending despite Middle East tensions, the advance estimate from the Census and Statistics Department exceeded the 4% rise in Q4 2025. A government spokesman highlighted a positive outlook but noted regional risks.
Hong Kong's economy grew 5.9% year-on-year in the first quarter of 2026, confirming Paul Chan's pre-release forecast of exceeding 4% and marking the strongest quarterly performance since the 7.6% expansion in Q2 2021. The Census and Statistics Department issued the advance estimate on May 5.
Key drivers included private consumption and a 2.9% rise in government consumption expenditure, up from 1.5% in Q4 2025, amid Middle East conflicts and higher energy costs.
The government spokesman cited strong global demand for AI-related electronics, sustained visitor arrivals, and robust cross-boundary financial activity as supporting factors. "Relatively solid business and consumer sentiment is expected to continue supporting domestic demand," the spokesman said. "However, persistent tensions in the Middle East pose downside risks."
The results highlight Hong Kong's resilience amid external challenges.
