Hong Kong Q1 GDP expands at strongest pace in nearly 5 years
Chinese tourists walk in front of Central financial district, in Hong Kong, China, on Aug 11, 2023.
PHOTO: Reuters
HONG KONG - Hong Kong's economy expanded 5.9 per cent in the first quarter from a year earlier, official advance estimates showed on Tuesday (May 5), the 13th consecutive quarter of growth and the strongest quarterly rate in nearly five years.
The government projected GDP growth of between 2.5 per cent and 3.5 per cent for 2026 after 3.5 per cent growth for 2025.
"Looking ahead, Hong Kong's economic 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 spokesman said.
He said, however, that tensions in the Middle East "pose downside risks".
Gross domestic product growth in the first quarter was the fastest since the second quarter of 2021, when the economy grew 7.6 per cent. That compared with a revised 4.0 per cent in the fourth quarter of 2025.
On a seasonally adjusted quarterly basis, the economy expanded 2.9 per cent in January-March, the data showed, compared with 1.0 per cent growth in October-December.
"The rapid global development of artificial intelligence has driven strong demand for related products and electronics across the board, which has, to some extent, mitigated the potential impact of geopolitical tensions on local exports and the economy," Financial Secretary Paul Chan wrote on his blog at the weekend.
Private consumption expenditure increased by 5.0 per cent in the first quarter, compared with 2.5 per cent in the fourth quarter of 2025.
Total exports of goods jumped 23.8 per cent in the first quarter, compared with a revised 15.4 per cent in the fourth quarter of 2025.
Imports of goods climbed 29.9 per cent, compared with a revised 18.2 per cent rise in the fourth quarter.
"Facing a complex and ever-changing external environment, Hong Kong's economy is moving forward by enhancing quality and increasing scale," Chan wrote, adding that deepening AI applications across sectors and strengthening talent development are among the priorities.
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