Hong Kong's economy continues to show robust growth, driven by a surge in foreign trade and resilient domestic demand. According to the "2026 Half-Year Economic Report" and revised GDP figures for the second quarter of 2026 released by the Hong Kong Special Administrative Region (HKSAR) Government, the city's economic expansion has been broad-based, though with notable variations across sectors.
The HKSAR Government Economic Adviser, Ms. Fan Wanyuan, detailed the economic performance for the second quarter of 2026 and presented the latest full-year GDP and price forecasts for 2026. Real GDP grew by 4.3% year-on-year in the second quarter, following a 5.9% increase in the first quarter. For the first half of 2026, real GDP rose by 5.1% year-on-year, representing the strongest half-year performance in five years.
Addressing the phenomenon of "strong economic growth but varying experiences across different industries," Ms. Fan noted that while all sectors expanded in the second quarter, the pace of growth varied. For instance, goods exports surged by 28.9% in the second quarter, accelerating from a 23.8% rise in the first quarter, achieving robust double-digit growth. On the investment front, private investment recorded double-digit expansion for a third consecutive quarter, climbing from 14.6% in the fourth quarter of last year and 10% in the first quarter to 19.4% in the second quarter. Private consumption, meanwhile, grew for a fifth consecutive quarter, but at a more moderate pace, decelerating from approximately 2.5% in the second quarter of 2025 and 4.9% in the first quarter to 2.8% in the current quarter.
Ms. Fan stated: "Thus, the differences in growth rates and sustainability across sectors show that various industries have distinct experiences. The economic performance has some key themes, notably the significant role of technology in the past two quarters, driven by the AI boom. As a major trading hub for technology products, Hong Kong is clearly benefiting from the current global wave of AI investment."
In Hong Kong, the mainland serves as both a crucial supplier and a major consumer market for advanced electronic products. One-third of the mainland's integrated circuit exports are transshipped through Hong Kong, reflecting that approximately 70% of Hong Kong's goods export trade is related to AI products. The value of goods exports surged 41.5% in the first quarter and further accelerated to 63.7% in the second quarter. Beyond goods exports, AI is also making a significant economic contribution to investment. Hong Kong provides a vital financing platform for many technology and AI-related companies. According to data from the Hong Kong Exchanges and Clearing (HKEX), from December 2025 to May 2026, technology and AI-related companies raised HK$97.9 billion through initial public offerings (IPOs) in Hong Kong, accounting for 55% of total IPO proceeds during the period, meaning over half of the funds came from related industry chains.
Ms. Fan pointed out: "Foreign trade is strong, investment is robust, and consumption, a component of domestic demand, also shows resilience. Consumer price inflation rose slightly in the first half of the year but remained moderate." Ms. Fan added that looking ahead, AI-related demand and investment are expected to remain very strong, with the global trend continuing. This is anticipated to boost the economy in the second half of the year, benefiting both goods trade and investment. Consumer price inflation will continue to reflect the lagged effects of elevated international oil prices in the coming months, but price pressures in other areas remain mild, and overall inflation is expected to be moderate.