Financial News: Hong Kong Trade Gap Narrows Sharply In July

Hong Kong Trade Gap Narrows Sharply In July

(RTTNews) - Hong Kong's foreign trade deficit decreased markedly in July from a year ago as exports grew faster than imports, data from the Census and Statistics Department showed on Tuesday.

The trade shortfall dropped to HK$4.9 billion in July from HK$34.1 billion in the same month last year. In June, the trade balance showed a deficit of HK$51.9 billion.

Exports jumped 50.7 percent year-on-year in July, and imports also logged a strong growth of 41.0 percent. The upturn in exports was again underpinned by strong global demand for AI-related electronic products.

A visible trade deficit of HK$4.9 billion, equivalent to 0.7 percent of the value of imports of goods, was recorded in July 2026, the agency said.

Exports to Mainland China were 56.5 percent higher compared to last year. Total outflows to Asia as a whole expanded 54.6 percent. Within this, exports to Taiwan grew the most by 95.7 percent, followed by Vietnam with a 77.7 percent rise.

Apart from destinations in Asia, shipments to the USA and Mexico increased by 92.9 percent and 48.9 percent, respectively.

Meanwhile, imports from Korea jumped by 146.6 percent, and those from India grew by 110.7 percent. The country imported 106.3 percent more from the United Kingdom.

"Looking ahead, robust global demand for AI-related electronic products is expected to continue supporting Hong Kong's merchandise trade performance," a government spokesman said.

However, downside risks remain, as geopolitical tensions in the Middle East, trade protectionism among advanced economies, and risks associated with the rapid expansion of global investment in AI all warrant close monitoring, the spokesperson added.

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