Hong Kong could see its strongest full-year economic growth in five years in 2026, according to Financial Secretary Paul Chan. Speaking on a radio programme, he noted that the economy grew by 5.1 percent in the first half of the year, and strong export performance and investment growth continued into the third quarter. "What I'm most pleased to see is that in terms of investment, the growth momentum in the first half of the year carried through into the third quarter," Chan said, adding that visitor numbers to Hong Kong are high, the streets are busy, and there are many mega events such as the Wine and Dine Festival and concerts happening. Chan expressed optimism that 2026 could be the strongest economic growth in the past five years. Next year's budget will depend on economic performance, Chan stated, noting that any relief measures will be managed carefully given substantial infrastructure spending. He also highlighted external risks, particularly geopolitical tensions and the Middle East conflict, which could lead to oil price increases and inflationary pressures. Chan expects interest rates to remain high, which could affect the property market and the wider economy. He stressed that the authorities would remain alert to potential financial risks.
Chan acknowledged that geopolitical tensions and the Middle East conflict pose external risks to Hong Kong's economy. If these tensions persist, it could lead to higher oil prices and increased inflationary pressures. The financial secretary predicted that interest rates would likely stay relatively high, which could have a significant impact on the property market and the broader economy. Chan indicated that the government would continue to monitor these risks closely and adjust policies as needed to ensure stability. He emphasized the importance of fiscal prudence, given the ongoing infrastructure investment.