Hong Kong raises this year's GDP target to 3.5–4.5% after AI chip exports grow 28.9%
Macro
The Hong Kong government has raised its GDP growth forecast for 2026 to between 3.5 and 4.5 percent, up from the previous estimate of 2.5 to 3.5 percent, after the economy grew by an average of 5.1 percent in the first half of the year, the strongest pace in nearly five years. A key driver was second-quarter goods exports, which expanded by as much as 28.9 percent on global demand for electronics related to artificial intelligence, while services exports grew 3.4 percent, domestic investment expanded 4.4 percent, and private consumption spending rose 2.8 percent, with the unemployment rate steady at 3.7 percent. The Hong Kong government kept its headline inflation forecast at 2.6 percent, while warning of risks from geopolitical tensions and volatility in global AI investment. The Hong Kong Trade Development Council said Thai operators in electronics, smart components, semiconductors, and automation have opportunities to join the global supply chain through partners in Hong Kong, while premium Thai food, health food, premium fruit, and mid-to-upper lifestyle products can expand through modern retail and online channels.
