HK may see strongest growth in five years: Paul Chan

Financial Secretary Paul Chan has indicated that Hong Kong could witness its strongest full-year economic growth in five years during 2026. Speaking on a radio program, Chan noted that the economy expanded by 5.1 percent during the first half of the year and that robust export performance and investment growth persisted into the third quarter. He expressed particular satisfaction that the investment growth momentum maintained from the first half continued into the third quarter.

Chan highlighted the high number of visitors to Hong Kong, the bustling streets, and the numerous mega events occurring, including the Wine and Dine Festival and other major concerts. He suggested that 2026 might be the strongest full-year economic growth in the past five years.

Regarding next year's budget, Chan stated that any relief measures would hinge on the economic performance. He pledged the government's best efforts but acknowledged that significant infrastructure spending ahead would necessitate careful management of public finances. Chan also cautioned about external risks. If geopolitical tensions and the Middle East conflict continue, oil prices could surge, contributing to inflationary pressures.

He anticipated that interest rates would remain relatively high next year, potentially impacting the property market and the broader economy. Chan emphasized that authorities would remain vigilant to financial risks.