HONG KONG (Nov 13): Hong Kong's economy expanded by 5.2% from a year earlier in the third quarter, the government said on Friday, underpinned by a further pick-up in external trade growth and solid domestic demand.

The economy grew 4.2% in the second quarter of 2026 after expanding 5.9% in the first quarter.

The government revised up its 2026 GDP forecast to 4.8% from a previous range of 3.5% to 4.5%, on expectation of further solid growth in the fourth quarter.

In a seasonally adjusted quarter-to-quarter comparison, GDP increased by 1.9% in real terms in the third quarter from the second quarter of 2026.

"Looking ahead, the Hong Kong economy is poised for a strong full-year performance, supported by robust global AI investment and related trade," government economist Irina Fan said.

"Entering the fourth quarter, incoming data pointed to sustained growth momentum," Fan said, adding exports of services are expected to benefit from growth in visitor arrivals, among others, while solid consumer sentiment and private sector investment are set to support domestic demand.

Private consumption expenditure increased by a revised 2.9% in the third quarter, compared with a 2.8% increase in the second quarter and a 4.9% rise in the first quarter.

Total exports of goods jumped a revised 30.3% in the third quarter, compared with an increase of 28.9% in the second-quarter and 23.8% growth in the first quarter.

Forecasts for the underlying and headline consumer price inflation rates for 2026 were revised down to 1.9% and 2.0% respectively, from 2.5% and 2.6% in the August round of review.

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