Payment delays hit 40% of firms despite 2026 growth upgrade

Agrifood, construction, and energy firms reported customer defaults.

About 40% of Hong Kong businesses reported more frequent and severe payment delays despite average payment terms of 73 days, according to Coface.

One in three firms also experienced customer defaults, particularly in agrifood, construction and energy.

“Nearly half of respondents expect payment behaviour to worsen over the next 12 months, especially in the automotive and ICT sectors,” Coface said.

The findings come despite the government raising its 2026 growth forecast for Hong Kong to 3.5%-4.5% from 2.5%-3.5%, highlighting continued pressure on businesses even as the economy expands.

Hong Kong’s GDP growth moderated to 4.3% in the second quarter, whilst first-half growth reached 5.1%—the fastest semi-annual expansion in about five years.

Business sentiment remains subdued, with real estate posting slower transactions despite improved activity, whilst business services weakened on lower equity market turnover. Retail and cross-border trade also weakened.

Coface said exports, investment, and consumption remain key areas to watch.

Exports have been supported by demand for artificial intelligence-related electronics, whilst investment has benefited from construction and public investment. Consumer spending, however, continues to recover gradually.