HK's 2026 GDP adjusted upwards to 3.5-4.5%

The government has adjusted its full-year economic growth forecast upwards by 1 percentage point to between 3.5 and 4.5%.

At a press conference, the government says the second quarter economic performance, has been buoyed by both foreign trade and domestic demand.

The economic growth in the second quarter grew by 4.3% year-on-year.

Global demand for AI-related electronic products is strong, driving the growth of goods exported in Q2 to surge by 28.9%, higher than the preliminary figure announced last month.

Service exports expanded by 3.4%,

As for private consumption and the investment-related capital formation, the growth rate slowed significantly compared with the first quarter, but still grew by 2.8% and 4.4% year-on-year respectively.

The city's economy grew 5.1% in the first half of the year -- delivering the best performance over the past five years.

Government Economist IRINA FAN: "For the outlook, the Hong Kong economy expected to see solid growth in the second half of the year, given very vibrant AI-related demand and resilient domestic demand. Consumer price inflation is expected to increase in the coming months as the earliest increase in the international oil prices continues."