Hong Kong posts $45.4b trade deficit amidst strong import growth in March

Import value increased by 16.6% in the month.

Hong Kong posted a trade deficit of $45.4b, equivalent to 9.1% of the value of imports of goods in March 2025, amidst strong import value growth.

In March 2025, the value of total exports of goods increased by 18.5% over the year earlier to $455.5b, after a year-on-year increase of 15.4% in February 2025. Concurrently, the value of imports of goods increased by 16.6% over the year earlier to $500.9b in March 2025, after a year-on-year increase of 11.8% in February 2025.

For the first quarter of 2025 as a whole, the value of total exports of goods increased by 10.9% over the same period in 2024. Concurrently, the value of imports of goods increased by 9.8%. A visible trade deficit of $80.7b, equivalent to 6.4% of the value of imports of goods, was recorded in the first quarter of 2025.

Comparing the first quarter of 2025 with the preceding quarter on a seasonally adjusted basis, the value of total exports of goods increased by 12.7%. Meanwhile, the value of imports of goods increased by 9.9%.

Hong Kong's exports to Asia rose by 22.4% year-on-year in March 2025, driven by strong growth to Taiwan (+61.3%), Malaysia (+57.3%), Vietnam (+41.3%), the Philippines (+34.5%), and mainland China (+25.4%), while exports to Korea fell by 22.8%.

Outside Asia, exports to the UK and the US rose by 48.5% and 11.4% respectively, but fell by 29% to the Netherlands.

Imports also surged from Vietnam (+95.1%), Taiwan (+75.8%), and the UK (+55.6%), but declined from Korea (-21.0%). In Q1 2025, exports to Vietnam, Taiwan, and mainland China grew, while shipments to the UAE and India declined. Imports from Vietnam, the UK, Taiwan, and Malaysia increased, while those from Korea dropped by 23.6%.

“Looking ahead, global trade tensions have escalated abruptly due to the significant increases in tariffs by the United States in early April. This will pose challenges to Hong Kong's merchandise trade performance,” a government spokesperson said.