Hong Kong's trade deficit widened to HK$52 billion in June from HK$44.2 billion in May amid a surge in exports, according to data from the city's Census and Statistics Department released Monday.
The latest print missed the HK$45 billion forecast compiled by Trading Economics for the month.
Exports grew 53.4% year over year to HK$641.1 billion, led by a 57% rise in exports of electrical machinery. Exports of office machines and automatic data processing machines grew 93.2%, and telecommunications and sound recording and reproducing apparatus increased 69.9%.
A government spokesman attributed the increase to strong demand for artificial intelligence-related electronic products.
Imports rose 45.4% to HK$693 billion during the month, led by a 54% rise in purchases of electrical machinery and electrical parts thereof, as well as a 67.3% growth in telecommunications and sound recording and reproducing apparatus and equipment imports, and a 53.6% rise in office machines and automatic data processing machine imports.
For the first half, the trade deficit reached HK$294.6 billion, with exports rising 39.1% and imports growing 40.6%.
While demand for AI-related products should help prop up the city's economy, Hong Kong will also have to monitor the impact of renewed geopolitical uncertainty in the Middle East.
