Hong Kong’s economy grew 4.3% year-on-year in the second quarter of 2026, in line with preliminary estimates but down from 5.9% in the previous quarter. The slowdown was mainly due to weaker domestic demand. Growth in household consumption eased to 2.8%, from 4.9% in the first quarter. Government spending was unchanged after a 2.8% increase, and growth in gross fixed capital formation decelerated sharply to 4.4% from 18.3%.
By contrast, external demand remained the key driver of growth. Exports of goods accelerated to 28.9%, up from 23.8%, while exports of services inched higher to 3.4% from 3.3%. On the import side, growth in goods imports eased slightly to 29.3% from 29.9%, and imports of services slowed to 3.0% from 3.8%.
On a seasonally adjusted quarter-on-quarter basis, the economy contracted by 0.6%, reversing a 2.9% expansion in the previous three months and marking Hong Kong’s first quarterly decline in output since the second quarter of 2022.
