FX.co ★ Hong Kong Slips into Contraction as Q2 2026 GDP Falls 0.6% QoQ

Hong Kong’s economy contracted in the second quarter of 2026, with GDP falling 0.6% quarter‑on‑quarter, according to data updated on 31 July 2026. The decline marks a sharp reversal from the first quarter of 2026, when the economy expanded by 2.9% compared with the previous quarter.

The figures highlight a clear loss of momentum: while Q1 2026 showed robust quarter‑on‑quarter growth, the latest data indicate that activity has not only slowed but moved into negative territory. The comparison is based on sequential quarterly changes, with the “actual” reflecting the shift from the first to the second quarter of 2026, and the “previous” capturing the change from the final quarter of the prior period into Q1 2026.

The move from 2.9% growth to a 0.6% contraction raises concerns about the durability of Hong Kong’s recent economic recovery and will likely sharpen the focus of policymakers and investors on incoming data for the second half of the year.