Hong Kong's trade deficit nearly vanished in June 2026, dropping to $52 billion from $89.1 billion in March, attributed to a surge in exports driven by global demand for AI-related electronic products. Total exports increased by 53.4% year-on-year to $641.1 billion, marking the strongest growth since 1984 and exceeding expectations. This follows a 40.8% increase in May, showcasing sustained momentum in the city's trade performance. The robust demand for electrical machinery, apparatus, and telecommunications equipment, which saw increases of 57.2% and 69.9% respectively, was a key driver of this export boom. While Hong Kong produces little AI hardware itself, it has become a crucial hub for high-tech goods flowing in and out of China.
Imports also saw substantial growth, rising by 45.4% year-on-year to $693.0 billion, the strongest increase since 1992. This was largely propelled by increased purchases from major suppliers, particularly South Korea (+176.7%), Vietnam (+106.8%), and India (+95.4%). The significant increase in imports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (up 54.2%) and "telecommunications and sound recording and reproducing apparatus and equipment" (up 67.3%) reflects the strong demand for components related to the AI industry.
For the first half of 2026, Hong Kong's total exports of goods increased by 39.1% over the same period in 2025, and imports rose by 40.6%. This resulted in a visible trade deficit of $294.6 billion, equivalent to 7.9% of the value of imports. The government raised its full-year economic growth forecast for 2026 to a range of 3.5% to 4.5%, up from a previous range of 2.5% to 3.5%, citing buoyant external trade and resilient domestic demand, with AI-related demand expected to continue supporting merchandise trade. However, analysts, such as Bruce Pang from the Hong Kong Trade Development Council, suggest that export growth momentum may moderate in the coming months due to a likely steadying of the technology upcycle, a potential easing global economy, and high-base effects from the previous year.
