Strong First Quarter Performance
Hong Kong's economy expanded 5.9% year-on-year in Q1 2026, matching preliminary estimates and outpacing the previous quarter's 4.4% growth. The Hong Kong SAR government released the figures on May 15, maintaining its full-year growth forecast of 2.5% to 3.5%.
Growth Drivers
- External trade: Continued strong performance in exports
- Domestic demand: Strengthening private consumption and investment
- Financial services: Robust activity in the city's core sector
Property Market Recovery
Hong Kong's residential transaction volume rose 54.0% year-on-year in Q1 2026, with luxury leasing and investment activity strengthening. The property market recovery supports broader economic momentum.
2025 Baseline
In 2025, Hong Kong's economy grew 3.5%, with inflation remaining mild at 1.1% (underlying rate). The SAR government expects continued recovery in 2026 supported by trade and consumption.