Standard Chartered’s Senior Economist Tommy Wu raises Hong Kong’s 2026 GDP growth forecast to 3.2% from 2.5%, citing robust Q4 momentum, stronger financial activity and improving consumer sentiment. The bank expects a modest housing market rebound but remains cautiously optimistic due to structural shifts and global risks. HIBOR is seen lower in H1 before gradually rising again by Q4.

Growth upgraded but risks still present

"We raise our 2026 GDP growth forecast to 3.2% (from 2.5%), given the robust growth momentum in Q4."

"We expect the financial industry to capitalise on Hong Kong’s regained impetus, notably in IPO fundraising and Renminbi internationalisation."

"Consumer sentiment is likely to improve further given the ongoing stock market rally."

"We also expect a modest rebound in the housing market."

"However, we are cautiously optimistic."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)