Hong Kong’s economy is showing strong resilience and stable growth despite a complex and volatile global environment, with its first-quarter gross domestic product set to record the strongest quarterly expansion in almost five years, Financial Secretary Paul Chan Mo-po said on Sunday.
Writing in his weekly blog, Chan said improved private consumption, robust exports and sustained investment in fixed capital have fueled the economic momentum. Preliminary first-quarter GDP figures, to be released on May 5, are expected to surpass the revised four-percent growth recorded in the fourth quarter of last year, marking the city’s best quarterly performance in nearly five years.
Chan said the local consumption market has shown a clear recovery trend. According to Hong Kong’s Immigration Department, more than 602,000 visitors entered the city in the first two days of this month -- up six percent year-on-year. For the first quarter, visitor arrivals grew 17 percent year-on-year to over 14.3 million, setting a new post-pandemic quarterly high.
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Total visitor arrivals for 2026 are projected to exceed the original forecast of 53.8 million, boosting inbound tourism-related consumption to more than HK$240 billion ($30.6 billion) -- 9.5-percent higher than last year’s.
Local consumer spending has also improved since the second quarter of 2025. Data from major electronic payment platforms indicate that daily consumption expenditure by local residents have risen year-on-year for six consecutive quarters. In the first quarter, retail and dining-related spending increased 5.2 percent year-on-year, with consumption at non-fast-food restaurants rising nearly eight percent.
Beyond consumption, Hong Kong’s exports maintained robust momentum in the first quarter. Chan said the city’s total exports rose 32 percent in value, marking the 25th consecutive month of growth and the best quarterly performance in five years.
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In March alone, exports gained nearly 36 percent, driven by sharp increases in demand for electrical machinery, apparatus and appliances – up more than 40 percent; with exports of telecommunications and sound recording and reproducing apparatus and equipment surging over 63 percent.
Chan said the rapid global development of artificial intelligence has generated strong worldwide demand for related products and electronics, which has helped cushion the potential impact of geopolitical tensions on Hong Kong’s exports and broader economy.
On export markets, the value of shipments to the United States and the European Union has risen more than 47 percent and 15 percent, respectively. Chan noted the Chinese mainland has the world’s largest, most complete and most efficient industrial chain, which has irreplaceable advantages that continue to support the special administrative region’s export growth.
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To address challenges stemming from geopolitical developments, rising oil prices, and the situation in the Middle East, Chan said the government has introduced about HK$2 billion worth of short-term, targeted measures. These include fuel subsidies, increased funding for small and medium-sized enterprises, credit support for affected industries, and flexible loan repayment arrangements.
Looking ahead, Chan said Hong Kong will step up efforts to become a global center for high-value-added supply chain management and strengthen its status as an international trade hub. The city aims to attract more companies to establish regional headquarters and treasury centers, fostering economic development.
Contact the writer at akirawang@chinadailyhk.com
