Hong Kong’s economy grew by 5.9% year-on-year in Q1 2026, matching preliminary estimates and accelerating from an upwardly revised 4% in Q4 2025. This marked the strongest growth since Q2 2021, driven by solid domestic demand and continued resilience in external trade. Household consumption rose to 4.9%, from 2.5% in Q4 2025, while government spending doubled to 3% from 1.5%. Gross fixed capital formation climbed to 17.7%, compared with 11.7% in the previous quarter. On the external front, exports of goods surged to 23.7%, from 15.4% in the previous quarter, supported by sustained global demand for artificial intelligence (AI)-related electronic products and buoyant regional trade flows across Asia. Imports also strengthened sharply, rising to 29.8% from 18.2%. On a seasonally adjusted quarterly basis, GDP grew by 2.9%, a five-year high, compared with 1.1% in Q4 2025. The economy is expected to remain broadly resilient, with the government keeping its GDP forecast at 2.5%–3.5%.