Hong Kong exports surge 35.8% in March, sharpest rise in over 5 years

Hong Kong’s exports rose by nearly 36 per cent year on year in March – the sharpest rate in more than five years – backed by what authorities described as “strong global demand” for AI-related electronic products and outpacing last month’s growth despite trade disruptions. According to the Census and Statistics Department, the total value of exports of goods rose by 35.8 per cent to HK$618.4 billion (US$78.9 billion) in March compared with the same month in 2025. Imports rose by 41.2 per cent to HK$707.5 billion over the same period, resulting in a trade deficit of HK$89.1 billion in March. The export performance was the best since January 2021, when it jumped by 44 per cent year on year. Despite the positive numbers, a government spokesman warned of headwinds arising from ongoing geopolitical conflicts. “Looking ahead, the heightened geopolitical tensions in the Middle East have led to an upsurge in international energy prices, posing a downside risk to the near-term global economic outlook, with potential disruptions to global trade flows and supply chains,” he said. “Nonetheless, global demand for AI-related electronic products remains robust and should provide staunch support to the performance of Hong Kong’s merchandise exports.” In the first three months of this year, exports and imports jumped by 32 per cent and by 37 per cent, respectively, from the same period last year, resulting in a HK$168.4 billion trade deficit. Hong Kong’s externally oriented economy remained relatively resilient despite disruptive changes to the global trade environment and geopolitical turmoil. Exports were up by 24.7 per cent in February compared with a year earlier, while imports were up by 29.9 per cent. The Trade Development Council earlier forecast exports would grow by 8 to 9 per cent in 2026, driven by what it described as “robust demand” for products related to artificial intelligence. But confidence among Hong Kong exporters fell at its steepest rate in two years amid global trade turbulence in the first quarter of 2026, according to a council survey published in March. The survey was conducted over January and February and ended before the United States Supreme Court’s February 20 ruling that struck down President Donald Trump’s global tariff policy, which roiled markets last year. Soon after, Trump implemented a 10 per cent global tariff through a previously unused provision of US trade law, and days later launched a war alongside Israel against Iran, further disrupting markets and global trade. Days before the Middle East conflict erupted on February 28, Financial Secretary Paul Chan Mo-po predicted in his annual budget speech that the city’s economic momentum would continue into 2026, with growth estimated at between 2.5 and 3.5 per cent.