Q1 GDP expected to rise 5.9%, surpassing forecasts—Hong Kong’s strongest quarterly growth in five years sets the tone for the full year. The Census and Statistics Department reported that Hong Kong’s real GDP increased by 5.9% year-over-year in the first quarter of 2026, marking the strongest quarterly performance in five years, with a significant acceleration from the 4.0% growth recorded in Q4 2025. On a seasonally adjusted quarter-on-quarter basis, real GDP rose by 2.9% in Q1. On the demand side, private consumption expenditure rose 5% year-over-year (up from 2.5% in the previous quarter); government consumption expenditure increased by 2.9% year-over-year (above 1.5% in the prior quarter); and gross domestic fixed capital formation surged further to 17.7% year-over-year, following an 11.7% rise in Q4 last year. In external trade, goods exports rose 23.8% year-over-year (above 15.4% in the previous quarter); goods imports increased by 29.9% year-over-year; services exports rose 3.5%, while services imports rose 3.9%. Multiple institutions noted that the stronger-than-expected growth was driven by robust exports, strong initial public offerings (IPOs), a rebound in the property market and inbound tourism, and a recovery in domestic demand. The sharp rise in goods exports is also attributed to increased demand for electronic components, including those related to AI. #HongKong #GDP #CensusAndStatisticsDepartment #EconomicGrowth #PrivateConsumption #Exports #IPOs #PropertyMarket #InboundTourism #AIDemand #Macroeconomics #HongKongEconomy