Latest Developments

Gross Domestic Product and its major components (PDF) (Excel)

Latest situation
The Hong Kong economy expanded robustly in the first quarter of 2026, driven by the sustained strong performance in external trade and pick-up in domestic demand. Real Gross Domestic Product (GDP) grew by 5.9% over a year earlier in the first quarter, accelerating from the 4.0% growth in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP rose notably by 2.9%. Looking ahead, Hong Kong’s economic outlook remains broadly resilient. Strong global demand for advanced electronics and artificial intelligence‑related products is expected to support goods export performance, while services exports should remain firm, underpinned by sustained vibrancy in inbound tourism, robust cross-boundary financial activity, and steady demand for business services. Relatively solid consumer sentiment and resilient business outlook are expected to support domestic demand. The impacts of the Middle East conflict on the Hong Kong economy have so far been limited. Yet, the outlook of the conflict remains highly uncertain. A further escalation or persistence of tensions could heighten global financial market volatility, posing downside risks to growth and upside risks to inflation. Taking into account the stronger-than-expected outturn in the first quarter and the potential near-term headwinds in the external environment, the real GDP growth forecast for 2026 as a whole is maintained at 2.5% – 3.5%, the same as that announced in the Budget. Risk to growth is tilted to the downside due to the uncertainty surrounding the actual outcome of the scale and duration of the Middle East conflict. On the inflation outlook, the feed-through of higher international oil prices to fuel-related components in consumer prices should continue in the coming months. Overall inflation in Hong Kong is, however, expected to remain relatively well anchored, reflecting the city’s low energy intensity as a predominantly service-oriented economy, with stable energy supplies from the Chinese Mainland helping to mitigate external shocks. Taking into account the actual inflation situation in the first quarter and the factors mentioned above, the forecasts for the underlying and headline consumer price inflation rates for 2026 are revised up to 2.5% and 2.6% respectively, from 1.7% and 1.8% as announced in the Budget.


External sector (PDF) (Excel)

Latest situation
Merchandise exports continued to stage a strong performance in March. The value of merchandise exports grew by 35.8% over a year earlier on the back of strong global demand for AI-related electronic products. Exports to most markets and of most major commodities sustained strong growth.
Looking ahead, the heightened geopolitical tensions in the Middle East have led to an upsurge in international energy prices, posing downside risk to the near-term global economic outlook, with potential disruptions to global trade flows and supply chains. Nonetheless, global demand for AI-related electronic products remains robust and should provide staunch support to the performance of Hong Kong’s merchandise exports. The Government will continue to monitor the evolving external environment closely and stay vigilant.


Prices (PDF) (Excel)

Latest situation
Consumer price inflation accelerated somewhat but stayed moderate in March. The underlying Composite CPI rose by 1.6% over a year earlier, up from 1.3% in January and February combined. The acceleration mainly reflected the faster increases in prices of fuel-related components in the month, amid the upsurge in international oil prices due to the Middle East conflict. Meanwhile, price pressures on other components were largely contained.
Looking ahead, elevated international oil prices will likely continue to feed through to the relevant components in consumer prices gradually in the near term, with the final impacts hinging on the evolving situation in the Middle East. Yet, as price pressures from other sources generally stay contained, this should help rein in the potential upward pressure on overall inflation. The Government has introduced short-term targeted measures to address the recent increase in fuel prices, and will continue to monitor the development closely.


Labour market (PDF) (Excel)

Latest situation
The seasonally adjusted unemployment rate stayed at 3.7% in February – April 2026, same as that in the preceding three-month period. Meanwhile, the underemployment rate edged down by 0.1 percentage point to 1.5%. Over the same period, the labour force and total employment decreased slightly.
Looking ahead, the robust growth momentum of the Hong Kong economy should render support to the overall labour market. The Government will remain vigilant to the potential implications of the elevated geopolitical risks, and continue to monitor the development closely.


Retail and other economic indicators (PDF) (Excel)

Latest situation
Retail sales continued to strengthen in March. The value of total retail sales increased by 12.8% over a year earlier, with growth in sales of most broad types of retail outlet. Among the various types, sales of motor vehicles showed particularly strong growth, as purchases spiked before the expiry of the first registration tax concessions for electric private cars at end-March.
Looking ahead, the near-term outlook for retail sales is broadly positive, underpinned by recovering local demand, sustained growth in inbound tourism, and a favourable macro-financial environment. The Government will continue to monitor the downside risk arising from the evolving geopolitical tensions, for any potential implications for the consumer spending in the local market.


Other Economic Indicators


Hong Kong population (PDF) (Excel)


Regional headquarters/offices and external investments (PDF) (Excel)


Asset market, exchange rates and interest rates (PDF) (Excel)