Underpinned by a further pick-up in external trade growth and solid domestic demand, Hong Kong's economy expanded strongly in the third quarter of 2026, with real gross domestic product (GDP) rising 5.2% year on year.

Presenting the Third Quarter Economic Report 2026 at a press conference today, Government Economist Irina Fan said that in the first three quarters, real GDP grew by 5.1% over a year earlier, which is the fastest pace in five years for the corresponding period.

Total goods exports surged 30.3% year on year in the third quarter, fueled by strong global demand for artificial intelligence-related electronics.

Domestically, private consumption rose 2.9% for its sixth consecutive quarter of growth.

Factoring in the results from the first three quarters and expectations of continued solid growth in the fourth, the full-year GDP growth forecast for 2026 has been revised up to 4.8%.

Looking ahead, Ms Fan said that, supported by robust global AI investment and related trade, Hong Kong's economy is poised for a strong full-year performance.

“Incoming data for entering the fourth quarter also points to sustained growth momentum. Domestic demand should stay resilient. However, uncertainty in the external environment persists, including those from geopolitical tensions, US monetary policy, and trade protectionist measures. So, all of these are worth closer monitoring.”

She noted that the overall inflation rate should remain moderate. 

Taking into account inflation in the first three quarters, the forecasts for the underlying and headline consumer price inflation rates for 2026 have been revised down to 1.9% and 2.0% respectively.