Financial News: Hong Kong Q2 GDP Growth Confirmed At 4.3%

Hong Kong Q2 GDP Growth Confirmed At 4.3%

(RTTNews) - Hong Kong's economic growth moderated as initially estimated in the second quarter, the latest data from the Census and Statistics Department showed Friday.

Gross domestic product advanced 4.3 percent year-over-year in the June quarter, slower than the 5.9 percent growth in the first quarter. That was in line with the flash data published on July 31.

The expenditure breakdown showed that private consumption grew at a slower pace of 2.8 percent versus 4.9 percent seen in the first quarter.

Meanwhile, government consumption almost stalled, and the growth in gross fixed capital formation eased sharply to 4.4 percent from 18.3 percent. The fall in investments was due to a slowdown in public sector expenditure on building and construction, which primarily reflected the lumpiness of milestone-based payments in the quarter.

Both exports and imports of goods grew by 28.9 percent and 29.3 percent, respectively.

On a seasonally adjusted quarter-to-quarter basis, real GDP decreased by 0.6 percent versus a 2.9 percent expansion in the March quarter.

For the first half of 2026, real GDP grew by 5.1 percent over a year earlier, the strongest half-yearly performance in nearly five years, the agency said.

Looking ahead, the real GDP growth expected for 2026 as a whole is revised up to 3.5 percent - 4.5 percent, from 2.5 percent - 3.5 percent in the May round of review.

Inflation forecasts for 2026 remain unchanged, with underlying consumer price inflation expected at 2.5 percent and headline consumer price inflation at 2.6 percent.

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