HONG KONG – June 29, 2026 (NEWMEDIAWIRE) – The Hong Kong Trade Development Council (HKTDC) has upwardly revised its 2026 export forecast to year-on-year growth of above 20%. This follows a stronger-than-expected performance since the start of the year as well as sustained momentum in the global demand for technology products. Meanwhile, the HKTDC Export Confidence Index (2Q26), released today, shows an improvement in both of its key indicators – the Current Performance Index (51.0) and the Expectation Index (52.4). Both indicators rebounding above the 50 threshold reflects improved exporter sentiment stemming from evolving US trade policies and ongoing geopolitical developments.
AI-driven electronics boom supporting export growth
Commenting on the export performance, HKTDC Director of Research, Bruce Pang, said: “The recent upturn has been supported by resilient regional trade amid the AI-driven technology cycle, which has been maintained despite lingering uncertainties in the Middle East. Overall, the outlook for many of Hong Kong’s major markets has improved, with the Chinese Mainland and ASEAN remaining the most promising. Sentiment towards the US market has also strengthened following the Xi-Trump meeting in mid-May and recent trade policy developments. At present, export momentum is expected to remain solid, although geopolitical developments and risks to global demand may continue to create uncertainties.”
In the first five months of 2026, Hong Kong’s exports recorded a robust 36.2% year-on-year increase, an uptick underpinned by strong demand for electronics amid an accelerating global AI cycle. Electronics remained the key growth driver, accounting for more than 70% of Hong Kong’s total exports, with semiconductors and intermediate items putting in a particularly strong performance.
Most notably, the proliferation of AI applications, including generative AI and enterprise digitalisation, has triggered a new wave of demand for high-performance chips, information and communications technology (ICT) equipment, and related components. This has significantly boosted Hong Kong’s re-export trade, particularly to the Chinese Mainland, ASEAN production bases and major developed markets.
Growth partly price-driven amid tight supply conditions
While demand has remained strong, a notable portion of recent growth has been driven by price. Tight supply conditions in the semiconductor sector have led to significant increases in component prices, particularly in the case of memory chips and advanced processors.
