FINWIRES · TerminalLIVE
FINWIRES

Hong Kong's GDP Grows 4.3% in Q2

By

Hong Kong's gross domestic product rose 4.3% year over year in real terms in the second quarter, slower than a 5.9% rise in the previous quarter, according to revised figures released Friday by the office of the government economist.

For the first half of the year, real GDP increased 5.1% from the same period in 2025.

Goods exports and imports climbed 28.9% and 29.3%, respectively, in real terms. Exports and imports of services rose by 3.4% and 3%, respectively.

Private consumption expenditure increased 2.8% in real terms in the three months, slower than the 4.9% increase in the preceding quarter.

The Hong Kong economy is expected to maintain solid growth in the second half of the year, supported by strong global AI-related demand, merchandise exports, logistics, tourism, and financial services. Domestic demand is also expected to remain steady, although geopolitical tensions, inflation, central-bank policies, trade protectionism, and risks from rapid global AI investment remain key challenges.

The office of the government economist raised its 2026 real GDP growth forecast to 3.5%-4.5% from the previous range of 2.5%-3.5%, citing stronger-than-expected first-half growth and near-term outlook.

Related Articles

International

New Zealand Central Bank Maintains Loan-to-Value Ratio Restrictions Amid Contained Housing Risks

The Reserve Bank of New Zealand (RBNZ) on Friday left loan-to-value ratio (LVR) settings unchanged in its annual review of macroprudential policy, noting that housing risks are currently contained.The current settings, which have been in place since December 2025, allow up to 25% of new lending to have an LVR above 80% for owner occupiers, and up to 10% of new lending to have an LVR above 70% for investors."Nationally, house prices have remained broadly flat in recent years, while mortgage lending growth has been modest and the share of higher-risk lending remains manageable," said Angus McGregor, the central bank's assistant governor of financial stability.He added that debt-to-income restrictions, which complement LVR settings as a guardrail against the accumulation of high-risk lending, also remain in place.

^NZ50
International

Australia's Total Loan Commitments for Dwellings Falls in June Quarter

The number of total loan commitments for dwellings in Australia fell 5.4% to 134,225 in the June Quarter, data from the Australian Bureau of Statistics showed on Friday.New owner-occupier home loans declined 3.3% to 81,626, with their total value falling 1.9% to AU$60.53 billion, while first home buyer loans decreased 2.9% to 29,319, and rose 0.2% in value to AU$18.38 billion."Lending fell across all borrower types this quarter and returned to similar levels to this time last year," said Mish Tan, the bureau's head of finance statistics.Meanwhile, lending to investors fell 8.6% to 52,599. The total value of investment loans approved decreased over 10% to AU$37.12 billion.Compared with the year-earlier period, total loan approvals rose 0.1% in the June quarter. New home loans were flat, while investor loans increased 2.8%.

ASX 200
International

New Zealand Supermarkets See Grocery Supplier Costs Rise Nearly 2% Year Over Year in July, Infometrics Says

Costs for supermarkets in New Zealand from grocery suppliers increased 1.9% in July from a year earlier, Infometrics said in a Friday report."July's result was the slowest annual increase since February 2025, driven by a number of cost decreases as some fuel adjustment factors reversed out," according to Infometrics principal economist Brad Olsen.At the same time, "product cost increases haven't been as intense as first feared when conflict in the Middle East sent various input costs soaring," Olsen said."Although costs for some items have eased back slightly, increases continue across some household staples including meats, some produce, and recently some non-food grocery items," Olsen added.Supplier costs rose across all departments in July compared with a year earlier, with butchery cost increases led by beef, lamb, and pork, while higher produce costs were led by onions, cucumbers, and certain fruits.Month on month, just over 3,600 products increased in cost from June to July, which Infometrics said is "a more usual number of monthly cost increases after the surge in June."

^NZ50