Hong Kong raises economic forecast after best half-yearly performance in 5 years

Hong Kong has lifted its economic growth forecast for 2026, projecting a range of 3.5 to 4.5 percent. This upward revision comes after the city's robust second-quarter performance, with the economy expanding by 4.3 percent. The government's economic report, released on Friday, stated that the initial forecast of 2.5 to 3.5 percent growth was revised upward due to stronger-than-expected results in the first half of the year.

The government cited the near-term outlook, positive global demand for artificial intelligence-related electronic products, and rising visitor arrivals benefiting exports of services as key drivers for the improved outlook. Despite a slowdown in the second quarter compared to the stronger first quarter, the economy still achieved its strongest half-yearly performance in nearly five years, expanding by 5.1 percent.