Hong Kong trade deficit widens in June

Hong Kong’s trade deficit widened to HK$58.9 billion in June 2025 from HK$55.7 billion in the same month last year, as import growth continued to outpace export gains. Exports rose by a solid 11.9% year-on-year to HK$417.8 billion, supported by strong global demand for high-tech goods.

Notably, shipments of electrical machinery, apparatus and appliances, and electrical parts thereof surged 20.2%, while exports of office machines and automatic data processing machines increased by 10.4%. These gains were primarily driven by supply chain reconfigurations in Asia and recovering demand from regional partners.

Exports to Asia as a whole jumped 17.2%, with particularly strong performances in shipments to mainland China, Taiwan, and South Korea. However, exports to non-Asian markets saw a sharp contraction, reflecting continued geopolitical tensions and weaker demand conditions in the West.

Shipments to the United States dropped 12.1%, while those to the Netherlands plunged by 35.5%, highlighting the growing divergence between regional and Western trade dynamics.

On the import side, total inbound shipments increased 11.1% to HK$476.7 billion, led by higher purchases of electrical machinery and related parts (up 14.6%), and telecommunications and audio-visual equipment (up 17.7%).

This rise in imports reflects both robust consumer electronics demand and ongoing efforts by businesses to rebuild inventories. Import growth was especially strong from key trading partners such as Vietnam (+50.6%), likely benefiting from shifting production bases, as well as the United Kingdom (+44.7%) and the United States (+3.9%).

For the first half of 2025, Hong Kong’s cumulative trade deficit widened to HK$183.6 billion, with exports rising 12.5% and imports increasing 12.6% compared to the same period last year. While the growth in trade flows points to resilience in regional supply chains and a rebound in technology-related commerce, the persistent deficit highlights structural imbalances in Hong Kong’s external sector.

Going forward, the trade outlook remains sensitive to global interest rate trajectories, shifting trade alliances, and continued volatility in major Western economies.