HONG KONG (July 31): Hong Kong's economy expanded 4.3% from a year earlier in the second quarter, official advance estimates showed on Friday, the 14th consecutive quarter of growth underpinned by buoyant external trade and resilient domestic demand.

It compared with a mean forecast of 4.4% year-on-year growth by 15 economists polled by Reuters and a 5.9% growth in the first quarter of 2026.

In a seasonally adjusted quarter-to-quarter comparison, GDP decreased by 0.6% in real terms in the second quarter from the first quarter of 2026.

"Looking ahead, the Hong Kong economy should continue to post solid growth in the second half of 2026," a government spokesman said, adding that demand for artificial intelligence-related products should bolster merchandise exports.

He said exports of services should benefit from sustained growth in visitor arrivals and steady demand for financial and business services, however, that tensions in the Middle East and trade protectionist measures warranted "close surveillance".

Private consumption expenditure increased by 2.9% in the second quarter, compared with a revised 4.9% increase in the first quarter.

Total exports of goods jumped 28.8% in the second quarter, compared with first-quarter growth of 23.8%.

Imports of goods climbed 29.3%, compared with a 29.9% rise in the first quarter.

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