Hong Kong's economy grew 4.3% in Q2, but posted its first quarterly contraction since 2022

According to preliminary estimates from Hong Kong's Census and Statistics Department published on Friday 31 July 2026, Hong Kong's economy expanded 4.3% year on year in the second quarter of 2026, slower than the first quarter's 5.9% growth and slightly below the market expectation of 4.8%.

Domestic components slowed: private consumption expenditure eased to 2.9% from 4.9%, and government consumption expenditure to 0.5% from 2.8%. Gross fixed capital formation also lost momentum, rising 4.6% after an 18.3% increase in the previous quarter. External demand remained the main driver by contrast, with goods exports rising to 28.8% from 23.8%, while goods imports grew 29.3%, slightly slower than the first quarter's 29.9%.

The most notable point in the report is the quarterly picture: on a seasonally adjusted basis, Hong Kong's GDP contracted 0.6% in the second quarter, reversing the previous quarter's 2.9% expansion and marking the economy's first quarterly decline since the third quarter of 2022.