Hong Kong’s trade deficit narrowed sharply to $4.9 billion in July 2026 from $34.1 billion a year earlier, the smallest gap since the city recorded a surplus in January 2025. Exports surged 50.7% year-on-year to a record $672.5 billion, easing from 53.4% growth in June. Office machines and automatic data processing machines led gains with a 106.5% increase, while electrical machinery, apparatus and appliances, and related electrical parts rose 54%. Growth slowed across several other categories, including telecommunications equipment, power-generating machinery, and photographic and optical goods, while exports of professional, scientific and controlling instruments and machinery specialized for particular industries fell 10.2% and 8.8%, respectively. Exports to Asia grew 54.6%, led by Mainland China at 56.5%, while shipments to the US and Mexico rose 92.9% and 48.9%. Imports increased 41% to $677.4 billion, supported by stronger purchases of electrical machinery and related parts, office machines and automatic data processing machines, and non-ferrous metals, which rose 47.1%, 78.9% and 242.5%, respectively. Imports from Mainland China, South Korea and India grew 37.1%, 146.6% and 110.7%. Hong Kong’s trade deficit totaled $299.4 billion in the first seven months of 2026.