Hong Kong’s economy expanded 4.3% year-on-year in the second quarter of 2026, easing from 5.9% growth in the previous quarter and coming in slightly below expectations of 4.8%, according to preliminary estimates. Growth slowed in private consumption expenditure (2.9% vs. 4.9% in Q1) and government consumption expenditure (0.5% vs. 2.8%). Gross fixed capital formation also lost momentum, increasing 4.6% compared with an 18.3% rise in the previous quarter. Meanwhile, external demand remained a key driver of growth, with exports of goods rising to 28.8% from 23.8%, while imports of goods rose at a slightly slower pace of 29.3% after 29.9% in Q1. On a seasonally adjusted quarterly basis, GDP contracted 0.6% in Q2, reversing a 2.9% expansion in the preceding quarter and marking the first quarterly decline since the third quarter of 2022.