Strong AI demand prompts Hong Kong trade body to raise exports growth forecast

A stronger-than-expected global appetite for artificial intelligence-related products has led the Trade Development Council in Hong Kong to dramatically increase its export growth forecast for 2026. The council recently raised its full-year estimate to as much as 47 percent, up from an earlier projection of 20 percent. This revised outlook reflects the robustness of demand for AI-driven electronics, which are projected to propel Hong Kong's electronic exports forward throughout the remainder of the year.

Major export markets, including mainland China, the Association of Southeast Asian Nations (Asean), and the United States, are expected to sustain this growth momentum. Bruce Pang, the council's director of research, attributes this surge to the rapid acceleration in demand for AI-related products and infrastructure. Semiconductors, memory chips, computer components, telecommunications equipment, and other advanced electronics have seen expanded growth rates surpassing initial projections.

The council's findings indicate that Hong Kong's export performance has outperformed expectations, with an impressive 42.5 percent year-on-year growth in the first eight months of 2026. Electronics constitute around 80 percent of the city's total exports during this period, with a notable 52.8 percent year-on-year increase. Despite the imposition of an additional 12.5 percent Section 301 tariff by the United States on imports from certain trading partners, including the mainland and Hong Kong, the council anticipates that the impact on exports will be limited.

This is because a significant portion of Hong Kong's exports to the US falls under tariff exemption arrangements, particularly in the technology and electronics sectors. Hong Kong's exports to the US have remained resilient, surging by 63.4 percent year-on-year during the first eight months of 2026.