Hong Kong’s economy grew 4.3% year-on-year in the second quarter of 2026, slowing from 5.9% in the previous quarter and coming in slightly below market expectations of 4.8%, according to preliminary estimates. The moderation in growth was driven by weaker domestic demand, with private consumption expenditure slowing to 2.9% from 4.9% in Q1, and government consumption expenditure easing to 0.5% from 2.8%.
Investment activity also cooled, as gross fixed capital formation rose 4.6%, a sharp deceleration from the 18.3% increase recorded in the first quarter. By contrast, external demand continued to underpin overall growth. Exports of goods accelerated, rising 28.8% year-on-year compared with 23.8% in Q1, while imports of goods increased 29.3%, slightly below the 29.9% pace in the previous quarter.
On a seasonally adjusted quarter-on-quarter basis, GDP contracted by 0.6% in Q2, reversing the 2.9% expansion seen in the first quarter and marking the first quarterly decline since the third quarter of 2022.
