Hong Kong exports surge 53% to HK$667.9 billion, second highest on record

Hong Kong's exports surged by 53% to HK$667.9 billion in August, becoming the second-highest level on record, just behind July's peak. The increase was driven primarily by strong demand for artificial intelligence-related products. In contrast, imports rose by 60% to HK$739.1 billion, resulting in a trade deficit of HK$71.2 billion, which accounted for 9.6% of the value of imports.

Despite the positive outlook, external factors such as geopolitical tensions in the Middle East and protectionist trade measures among advanced economies posed uncertainty for Hong Kong's trade performance. Exports to Asia saw a significant rise of 59.2% year-on-year, with notable increases to Malaysia, Vietnam, and Singapore. South Korea emerged as the major source in imports, with a substantial 265.8% increase.

Over the first eight months of 2026, exports grew by 42.5% year-on-year, while imports increased by 43.2%, leading to a persistent trade deficit of HK$371.2 billion. Experts predict that September's exports may also be robust, possibly aided by shipments ahead of the Mid-Autumn Festival, but there could be headwinds for AI products due to the short upgrade cycle.