TDC upgrades HK export growth forecast

The Hong Kong Trade Development Council (TDC) has revised upwards the city's export growth forecast for 2026 to above 20 percent year on year, thanks to strong data since the beginning of the year as well as robust global demand for technology products.

In its Export Confidence Index released on Monday, the TDC said both of its key indicators – the Current Performance Index and the Expectation Index – rebounded and climbed above the 50-point threshold, at 51 and 52.4 respectively.

The TDC said the latest figures reflected improved exporter sentiment stemming from evolving US trade policies and ongoing geopolitical developments.

The electronics sector enjoyed the strongest export growth among all categories, due in part to AI boom.

"The electronics sector accounts for over 70 percent of Hong Kong's total exports," said Bruce Pang, director of research at the TDC.

"We expect in the near term that this [the demand for AI] will continue."

The TDC also said the mainland and the Asean bloc are the SAR's biggest export markets.

"We expect exports to these major destinations will continue to be driven by the AI-driven boom," Pang said.

He added that sentiment towards the American market has strengthened following a meeting between President Xi Jinping and his US counterpart Donald Trump in Beijing in May.

Edited by Edmond Fong ...