Hong Kong finance chief says economy grew in third quarter, warns of external risks

Hong Kong's economy experienced growth in the third quarter of the year, according to Finance Secretary Paul Chan Mo-po, who attributed this progress to robust exports and tourism. However, Chan cautioned about external risks, including the ongoing Middle East conflict and inflation concerns. He reiterated his optimism that the economy would achieve annual growth of 3.5 to 4.5 percent in 2026.

This statement came during a Legislative Council debate on the city's first five-year plan and annual policy address. Chan revealed that GDP had risen by 5.1 percent in the first six months of the year, marking the strongest half-year performance in five years. He expressed confidence in meeting the government's full-year growth target but emphasized ongoing monitoring of potential risks.

Factors such as Middle Eastern tensions, global inflation, trade protectionism, and the AI boom were identified as areas requiring close attention. Merchandise exports surged by 52 percent year-on-year in July and August, extending 19 months of double-digit growth. Visitor arrivals also continued to increase, with preliminary data showing a 9 percent year-on-year rise in the third quarter, totaling around 41 million for the first nine months of the year.

Chan noted strong stock trading activity and a thriving initial public offering market, with funds raised through IPOs surpassing HK$388 billion (US$49.4 billion) in the first nine months of 2026, exceeding last year's yearly total. The legislature commenced a three-day debate on the two policy documents, with an initial focus on the economy, finance, aviation, logistics, and trade.