Q2 2026 GDP Growth Slows to 4.3 Percent
Real GDP expansion in Q2 2026 decelerated to 4.3 percent year-on-year, down from 5.9 percent in the previous quarter. The Census and Statistics Department released these preliminary figures on September 18.
Overall economic output grew by 4.3 percent in the second quarter of 2026 compared to the same period last year. This represents a slowdown from the 5.9 percent increase recorded in the first quarter. The data reflects real terms, removing the effects of price changes.
The services sector drove most of the economic activity. Value added across all services activities rose by 5.1 percent year-on-year. This was lower than the 6.0 percent growth seen in the first quarter.
Service Sector Growth Decelerates
Trade activities remained the strongest performer in the services group. Import, export, wholesale, and retail trade value added increased by 12.8 percent. This figure declined from the 14.5 percent growth recorded in the previous quarter.
Financial services continued to show resilience. The financing and insurance sector expanded by 7.4 percent year-on-year. This is a slight dip from the 7.8 percent growth in the first quarter.
Other service sectors showed mixed results. Transportation, storage, and courier services grew by 1.1 percent. Information and communications rose by 2.9 percent. Real estate and professional services increased by 2.4 percent.
Construction Output Falls Sharply
The construction sector experienced a significant contraction. Value added decreased by 17.0 percent in the second quarter of 2026. This marks a reversal from the 8.4 percent increase seen in the first quarter.
Accommodation and food services also declined. This sector recorded a 0.1 percent drop in real terms. The previous quarter had shown a 0.5 percent increase.
Non-Service Sectors Show Mixed Trends
Local manufacturing output expanded by 2.3 percent year-on-year. This was lower than the 3.1 percent growth in the first quarter. The electricity, gas, and water supply sector grew by 2.5 percent, up from 1.2 percent previously.
Public administration and social services rose by 0.9 percent. This is down from a 2.0 percent increase in the prior quarter. The Census and Statistics Department published these findings in its quarterly report. GN markets/growth (en-US) notes the continued divergence between service and industrial components of the economy.
