Chen Maobo: Hong Kong's economy expected to grow 2.5 to 3.5 percent in 2026

Hong Kong Financial Secretary Chen Maobo announced his forecast for Hong Kong's economy in the 2026/2027 budget. He expects Hong Kong's economic growth to be between 2.5 and 3.5 per cent in 2026, driven mainly by the steady development of the mainland economy, the support of national macro policies and the expansion of trade in Asia driven by new technology investment such as AI. Hong Kong's exports of goods are expected to maintain considerable growth, and domestic demand is expected to improve steadily, driven by a stable labor market and rising incomes. At the same time, improved business climate and interest rate cuts are expected to benefit asset markets and investment activity. On the inflation side, the underlying and headline inflation rates are expected to be 1.7 per cent and 1.8 per cent, respectively. The medium-term outlook shows that Hong Kong's economy will grow by an average of 3% per year in real terms between 2027 and 2030, with underlying inflation averaging 2% per year. Looking back last year, Hong Kong's economy performed vigorously, with an overall growth rate of 3.5 per cent, the third consecutive year of growth.