Hong Kong has recorded its fastest quarterly economic growth in nearly five years, hitting 5.9 per cent, driven by private consumption and government spending despite the war in the Middle East.
The first-quarter growth outpaced the 4 per cent rise in the fourth quarter of last year, according to an advance estimate released by the Census and Statistics Department on Tuesday.
The 5.9 per cent year-on-year increase marks the strongest performance since the 7.6 per cent growth recorded in the second quarter of 2021.
A government spokesman said the economic outlook remained positive, supported by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activity.
“Relatively solid business and consumer sentiment is expected to continue supporting domestic demand,” he said. “However, persistent tensions in the Middle East pose downside risks to the economic outlook.”
Government consumption expenditure was 2.9 per cent higher in the first quarter over a year earlier, accelerating from the 1.5 per cent increase in the fourth quarter of 2025.
