Hong Kong economy grows 4.3% on strong external trade, resilient domestic demand

Hong Kong’s economy expanded by 4.3 per cent year on year in the second quarter of 2026, with the government expecting “solid growth” to continue for the remainder of the year.A government spokesman attributed the robust momentum to buoyant external trade and resilient domestic demand.“Looking ahead, the Hong Kong economy should continue to post solid growth in the second half of 2026,” the spokesman said on Friday.“Vibrant global demand for artificial intelligence-related products should bolster merchandise exports, while exports of services should benefit from sustained growth in visitor arrivals and steady demand for financial and business services.“domestic demand is expected to stay firm, supported by stable labour market conditions, and solid business and consumer sentiment.”However, the spokesman said lingering external headwinds, particularly geopolitical tensions in the Middle East, uncertainties surrounding US monetary policy and trade protectionist measures among major advanced economies, still warranted close surveillance.