Hong Kong’s trade deficit widened slightly to $45.4 billion in March 2025, up from $45 billion in the corresponding month of the previous year, marking the largest trade gap since September 2024.
Hong Kong trade gap largest in six months
This increase came despite a significant rise in exports, which soared 18.5% year-on-year to $455.5 billion, as demand for key products surged. Notably, exports of office machines and automatic data processing machines jumped by 133.5%, reflecting robust demand in the tech and electronics sectors. Other strong performers included power generating machinery and equipment, which rose by 27.5%, and miscellaneous manufactured articles, which increased by 23.2%. These gains suggest that Hong Kong’s role as a key trading hub for advanced machinery and electronics continues to be a major driver of its export performance.
On the other hand, imports climbed 16.6% from a year earlier, reaching $500.9 billion. The increase in imports was primarily driven by rising purchases of office machines and automatic data processing machines (up 130.8%), which reflects the continued expansion of technological and industrial needs. Non-ferrous metals, a key input for many manufacturing sectors, saw a sharp increase of 53.9%, while imports of power generating machinery and equipment also grew by 31.1%, in line with increasing demand for energy-related infrastructure and equipment.
Trade deficit remains a point of concern
Despite the growth in exports, the trade deficit remains a point of concern, particularly as the global economic environment remains volatile. In the first quarter of 2025, Hong Kong recorded a trade deficit of $80.7 billion. During this period, exports grew by 10.9%, while imports rose slightly more by 9.8% compared to the same period last year. This widening deficit could be attributed to higher domestic demand for capital goods and raw materials, as well as global supply chain disruptions that continue to impact trade flows.
The data highlights both the resilience of Hong Kong’s export sector, particularly in high-tech machinery, and the ongoing challenges posed by rising import costs. As the global economic recovery continues, particularly in the wake of trade tensions and other external factors, Hong Kong will need to carefully manage its trade balance to ensure sustained growth in its economy.
