Govt raises full-year GDP growth forecast
The government on Friday raised Hong Kong's economic growth forecast for 2026 to 3.5 percent to 4.5 percent, thanks to a strong first half. The economy was earlier projected to grow by 2.5 to 3.5 percent year on year. The upward revision came after the city posted a 5.1 percent growth in the January-to-June period, the best half-year performance in nearly five years. GDP growth reached 4.3…
The Hong Kong government has raised its 2026 GDP growth forecast to between 3.5% and 4.5%, marking a positive revision from the earlier projection of 2.5% to 3.5%. This optimistic outlook is attributed to a robust first half of the year, with the economy expanding by 5.1% in the first half, the highest growth rate in nearly five years.
The city experienced a 4.3% growth in the second quarter, following a 5.9% increase in the first quarter. Government Economist Irina Fan highlighted that Hong Kong has recorded six consecutive quarters of growth surpassing the 10-year quarterly average of 2.8%. Factors such as strong global demand for technology and AI-related products, as well as the potential impact of geopolitical tensions and central bank policies, are being closely monitored.
Sector-wise, exports saw a significant surge of 28.9% in the second quarter, compared to 23.8% in the previous three months, while private consumption expenditure growth slowed to 2.8% between April and June. The government anticipates consumer price inflation to rise due to continuing high oil prices, but expects other inflation pressures to remain contained.
The projected inflation rates for the underlying and headline consumer price index are 2.5% and 2.6%, respectively.
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- Govt raises full-year GDP growth forecast news.rthk.hk
