Hong Kong economy grew 5.2pc in Q3 2026

Hong Kong's economy expanded 5.2 percent year-on-year in the third quarter of 2026, driven by robust exports and domestic demand, according to preliminary estimates from the Census and Statistics Department. This marked a notable 4.2 percent increase from the previous quarter. When adjusted for seasonal variations, GDP rose by 1.9 percent quarter-over-quarter.

For the first nine months of the year, the economy expanded by 5.1 percent, marking the strongest growth in the sector in five years. Goods exports surged by 30.4 percent in real terms, up from 28.9 percent in the prior quarter, while imports grew by 29.9 percent. Services exports saw a 4.3 percent increase. The government's investment component grew by 7.3 percent, while private consumption rose by 2.8 percent, and government consumption increased by 1.7 percent.

A government spokesperson attributed the economic growth to accelerating exports and solid domestic demand, highlighting positive outlooks based on global artificial intelligence investments, increased tourism, cross-border traffic, and active financial markets. However, the spokesperson cautioned against the potential negative impacts of geopolitical tensions in the Middle East and tighter monetary policies by major central banks.

Revised GDP figures and the updated forecast for 2026 were scheduled to be released on November 13. Retail sales also showed significant growth, with a 6.4 percent year-on-year increase in September, bringing the total to HK$33.4 billion – marking the 17th consecutive month of expansion. Online sales accounted for 13.1 percent of total retail sales in September, reflecting a 12 percent rise to HK$4.4 billion and a 21.2 percent increase over the first nine months.

The spokesperson credited solid local consumption sentiment, increased visitor arrivals, and earlier Mid-Autumn festive sales for the retail sector's growth. Upcoming mega events, festive celebrations, and inbound tourism were expected to further bolster retail momentum, but the spokesperson emphasized the need for vigilance regarding external challenges.