On the 15th, the Hong Kong SAR government released the "2026 First Quarter Economic Report" and revised figures for the first quarter of 2026 Gross Domestic Product. Considering the stronger than expected performance in the first quarter and potential adverse external factors, the government maintains the growth forecast of 2.5% to 3.5% in real GDP for the whole year of 2026 as stated in the budget. The SAR government stated that the Hong Kong economy expanded strongly in the first quarter, driven by sustained strong foreign trade performance and increased local demand. In the first three months, the real local gross domestic product increased by 5.9% year-on-year, which is consistent with the pre estimate and a larger increase than the previous quarter's 4.0% growth rate. After seasonal adjustment, the real gross domestic product in the first quarter increased by 2.9% month on month. In terms of foreign trade, driven by the sustained global demand for artificial intelligence related electronic products and the smooth trade within Asia, Hong Kong's overall goods exports in the first quarter increased significantly by 23.7% year-on-year in real terms. Service output continued to grow steadily by 3.5% year-on-year in real terms. Local demand has increased in both consumption and investment. The growth rate of private consumption expenditure has accelerated, with a year-on-year real growth of 4.9% in the first quarter, reflecting a more stable recovery in household consumption. The overall investment expenditure continues to expand in double digits, with a year-on-year real growth of 17.7% in the first three months. Data shows that the Hong Kong labor market has slightly improved, with the seasonally adjusted unemployment rate dropping by 0.1 percentage points from the previous quarter to 3.7% in the first quarter. The residential property market continues to strengthen, with further increases in both selling prices and rents recorded in the first quarter. Consumer price inflation remained mild, with the basic composite consumer price index rising by 1.4% year-on-year in the first three months. Economic Advisor to the Special Administrative Region Government, Fan Wan'er, believes that looking ahead, the economic prospects of Hong Kong will generally remain strong and resilient. The impact of the Middle East conflict on Hong Kong's economy has been limited to this day, but the direction of the conflict is still unclear. If the situation further escalates or remains tense, it may exacerbate global financial market volatility, pose a downside risk to growth, and pose an upside risk to inflation. (Looking into the New Era)