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| Government Economist Irina Fan (center), presents the First Quarter Economic Report 2026 alongside Principal Economist Eric Lee and Asst Commissioner for Census and Statistics Edith Chan |
Prices of consumer-bought products are expected to rise modestly during the next three quarters of the year as Hong Kong’s economy is expected to continue its robust growth, according to the government’s First Quarter Economic Report 2026.
“Overall inflation in
Hong Kong is expected to remain relatively well anchored, reflecting the city's
low energy intensity as a predominantly service-oriented economy, with stable
energy supplies from the Mainland helping to mitigate external shocks,” according
to the report, presented by the Government
Economist, Irina Fan.
Based on the previous quarter’s inflation situation, it
estimated the consumer prices inching by 2.5% to 2.6%, up from estimates of 1.7%
and 1.8% as announced in the government’s 2026 Budget.
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In the first quarter of 2026, consumer price inflation
stayed modest though it picked up somewhat in March, mainly driven by
fuel-related components amid higher international oil prices.
“Price pressures in other components were largely contained.
The underlying Composite Consumer Price Index (Composite CPI) rose by 1.4% in
the first quarter over a year earlier, following the 1.1% increase in the
preceding quarter,” the report said.
“Including the effects of the Government's one-off relief
measures, the headline Composite CPI increased by 1.6% year-on-year in the
first quarter,” it added.
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| PINDUTIN ITO PARA SA DETALYE |
In the past two months, the Government has introduced
short-term, targeted measures to provide timely relief to sectors with
relatively high fuel cost.
“The Government remains vigilant to the risks of further
escalation of the conflict (in the Middle East), will closely monitor the
developments, and will respond further as appropriate to safeguard price
stability,” the report said.
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| Basahin ang detalye! |
Other main points of the report:
* The Hong Kong economy expanded robustly in the first
quarter of 2026, driven by the sustained strong performance in external trade
and pick-up in domestic demand. Real GDP grew by 5.9% over a year earlier in
the first quarter, accelerating from the 4.0% growth in the preceding quarter.
On a seasonally adjusted quarter-to-quarter comparison, real GDP rose notably
by 2.9%.
* Total exports of goods grew markedly by 23.7%
year-on-year in real terms in the first quarter, underpinned by sustained
global demand for artificial intelligence (AI)-related electronic products and
buoyant regional trade flows in Asia. Exports of services continued to expand
solidly by 3.5% in real terms over a year earlier, with broad-based growth
across all major service groups.
* Domestic demand strengthened across both consumption and
investment. Private consumption expenditure saw accelerated growth of 4.9%
year-on-year in real terms in the first quarter, reflecting the more entrenched
recovery in households' spending. Overall investment expenditure continued to
expand at a double-digit rate of 17.7% year-on-year in real terms in the first
quarter, alongside the robust economic growth.
* The labour market showed modest improvement in the first
quarter. The seasonally adjusted unemployment rate edged down further by 0.1
percentage point from the preceding quarter to 3.7% in the first quarter. The
underemployment rate also decreased by 0.1 percentage point to 1.6%. Average
employment earnings continued to record year-on-year growth in the first
quarter.


















