External trade, one of the three key pillars of Hong Kong's economy, delivered exceptionally strong performance in June, supported by robust global demand for artificial intelligence (AI)-related electronic products and a rush by businesses to ship goods before the expiry of the US's temporary 10% universal tariff on July 24.
Multiple trade indicators reached their highest levels in decades. According to figures released by the HKSAR Government yesterday (July 27), both exports and imports exceeded market expectations in June. Exports surged 53.4%, marking the 28th consecutive month of growth and the fastest increase since March 1984, a 42-year high. Imports rose 45.4%, the strongest growth since February 1992, the highest in about 34 years. Exports to the US soared 114.3% in June, the strongest increase since records began in 1973. Looking ahead to the second half of the year, market participants expect HK's external trade to remain strong, supported by the AI cycle, with full-year exports likely to grow by more than 20%.
According to the Census and Statistics Department, HK's imports and exports both surpassed market expectations in June. The value of total merchandise exports reached HK$641.1 billion, up 53.4% year on year, exceeding the market forecast of 43.8%. It was the strongest growth since exports rose 61.6% in March 1984, representing the highest increase in 507 months, or 42 years. The value of merchandise imports totalled HK$693.0 billion, up 45.4% from a year earlier, also beating the market expectation of 43.8%. It marked the strongest increase since imports grew 51.5% in February 1992, the highest level in 412 months, or about 34 years. For the first half of the year, the value of total merchandise exports increased 39.1% compared with the same period in 2025, while imports rose 40.6%.
AI cycle drives 54.4% growth in exports to Asia
A government spokesperson said merchandise exports continued to surge in June, mainly driven by sustained strong global demand for AI-related electronic products, with total merchandise exports rising 53.4% year on year. Exports to most major markets continued to record substantial increases.
Looking ahead, the government said buoyant global demand for AI-related electronic products should continue to support HK's merchandise trade performance. However, renewed geopolitical tensions in the Middle East warrant close attention. The government will continue to closely monitor their potential impact on export performance.
Market participants remain optimistic about HK's external trade outlook for the second half of the year, expecting exports to increase by more than 20% for the full year under the continued support of the AI cycle.
By market, total exports to Asia rose 54.4% in June compared with the same month in 2025. Within the region, exports to most major destinations recorded increases, including Singapore (83.0%), Taiwan (79.9%), the Chinese mainland (59.2%), Vietnam (55.9%) and Thailand (52.3%). Among other major destinations, exports to the US increased 114.3%, while exports to Mexico climbed 94.2%.
Imports from South Korea and Vietnam more than double
Imports from most major suppliers also recorded gains in June. Imports from South Korea surged 176.7%, followed by Vietnam (106.8%), India (95.4%), Malaysia (62.4%) and the Chinese mainland (41.0%).
For the first half of the year, compared with the same period in 2025, total exports increased across most major markets, including Singapore (90.1%), Taiwan (68.8%), the US (57.8%), Thailand (53.9%), the United Arab Emirates (53.8%) and the Chinese mainland (42.4%). During the same period, imports also increased, led by South Korea (117.8%), India (104.6%), Vietnam (91.8%), the UK (85.0%) and the Chinese mainland (44.4%).
By commodity category, exports of electrical machinery, apparatus and appliances, and electrical parts thereof increased by HK$121.8 billion, or 57.2%, year on year in June. Exports of office machines and automatic data processing machines rose by HK$45.9 billion, or 93.2%, while telecommunications and sound recording and reproducing apparatus and equipment increased by HK$32.8 billion, or 69.9%.
On the import side, imports of electrical machinery, apparatus and appliances, and electrical parts thereof increased by HK$55.76 billion, or 47.0%, while telecommunications and sound recording and reproducing apparatus and equipment rose by HK$20.40 billion, or 71.5%. Imports of non-ferrous metals climbed by HK$9.30 billion, or 197.8%.
(Source: Wen Wei Po)
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