Hong Kong's economy to grow 2.5 to 3.5 pct in 2026: financial secretary

HONG KONG, Feb. 25 (Xinhua) -- Based on assessment of current global and local economic situations, Hong Kong's economy is forecast to grow 2.5 percent to 3.5 percent in 2026, Paul Chan, financial secretary of China's Hong Kong Special Administrative Region government, said on Wednesday.

The Chinese mainland will serve as a key driver for both regional and global economic momentum, providing firm support for Hong Kong, Chan said while delivering the 2026-27 budget.

China will implement more proactive macro policies this year, expanding domestic demand and steadfastly advancing high-quality development, while maintaining reasonable economic growth, Chan noted, adding that this would generate propitious conditions for Hong Kong's economic growth.

Driven by investments in artificial intelligence and other new technologies, the demand for related products continues to underpin trade expansion in Asia, Chan said.

He expected Hong Kong's exports of goods to sustain decent growth and domestic demand to grow steadily this year. Improvements in business sentiment, coupled with expectations of interest rate cuts, will boost asset markets and investments, Chan added.

Hong Kong's underlying inflation rate and the headline inflation rate are projected to be 1.7 percent and 1.8 percent in 2026, respectively, according to Chan.

From 2027 to 2030, Hong Kong's economy is estimated to grow on average by 3 percent per year in real terms, with the underlying inflation rate averaging 2 percent per year.

Official data showed that Hong Kong's economy grew 3.5 percent in 2025, marking the third consecutive year of expansion.