Hong Kong's economy expanded at its fastest pace in five years last quarter, beating forecasts as AI-linked exports surged and the property market stabilised. Consumption and investment also held up, offering a rare bright spot after years of sluggish growth.

Hong Kong's economy expanded at its fastest pace in five years in the third quarter, beating economists' expectations, as a surge in artificial-intelligence-linked exports combined with a rebound in the property market to lift overall output. Figures from the city's Census and Statistics Department showed growth accelerating from the previous quarter, reversing months of sluggish momentum tied to weaker global trade and a prolonged property slump.

Officials and analysts pointed to strong external demand for AI chips, data-centre equipment and related components as the single biggest driver, with Hong Kong firms benefiting from the broader Asian technology investment boom centred on mainland China and Taiwan. Consumer spending and private investment also held up better than expected, as the property sector's gradual stabilisation eased pressure on household balance sheets after a lengthy downturn.

The data offers a rare bright spot for a city whose economy has struggled to shake off the effects of elevated interest rates, geopolitical friction between Washington and Beijing, and competition from rival financial hubs. Hong Kong's government is expected to cite the figures as it finalises its next budget forecast, though economists cautioned that reliance on AI-export demand leaves growth vulnerable to any slowdown in global tech spending.