Curated News
By: NewsRamp Editorial Staff
December 12, 2025
Hong Kong Exports to Grow 8-9% in 2026, Fueled by AI Demand
TLDR
- Hong Kong exporters can leverage AI electronics demand and China's 20% US tariff advantage to gain market share over competitors facing higher tariffs.
- The HKTDC forecasts 8-9% export growth in 2026 driven by AI electronics demand, with indices above 50 indicating expansion across multiple sectors.
- Hong Kong's export growth fueled by AI technology creates economic stability and job opportunities, improving livelihoods through sustained trade development.
- Hong Kong's jewelry sector leads export optimism with a 54.8 index, outpacing electronics despite AI driving overall growth.
Impact - Why it Matters
This news matters because Hong Kong's export growth forecast signals broader economic resilience and strategic positioning in global trade, particularly in the high-value AI electronics sector. As a major trading hub, Hong Kong's performance often reflects regional and global economic health, impacting supply chains, investment flows, and job markets. The shift away from US tariff concerns toward opportunities in Asia, especially China and ASEAN, suggests a realignment of trade priorities that could benefit businesses leveraging these markets. For consumers and investors, this indicates sustained innovation in AI products and potential stability in electronics pricing, while highlighting the ongoing need to navigate trade complexities like tariffs and logistics challenges.
Summary
The Hong Kong Trade Development Council (HKTDC) has released its annual Export Outlook report, forecasting that Hong Kong's exports will grow by 8% to 9% in 2026. This optimistic projection follows a stronger-than-expected 2025 performance and is primarily driven by robust global demand for AI-related electronics products, which account for over 70% of the city's total export value. According to the HKTDC's 4Q25 Export Confidence Index, 53.2% of exporters identify rising demand for AI and new technology consumer goods as the key factor likely to boost their 2026 business, highlighting the sector's critical role in the region's economic trajectory.
Key figures from the HKTDC, including Director of Research Irina Fan and Head of Special Project and Business Advisory Section Kenneth Lee, provide crucial insights into the shifting trade landscape. Fan notes that while 2025 was marked by uncertainty due to anticipated US tariffs, 2026 promises greater clarity following a November trade agreement between China and the US. This deal has removed US tariffs from Hong Kong exporters' top three concerns, though Fan acknowledges that businesses worldwide will continue optimizing supply chains to navigate varying tariff rates. Specifically, Chinese mainland exports to the US will face a 20% reciprocal tariff until November 2026, positioning China-based suppliers competitively against Southeast Asian counterparts while disadvantaging higher-tariff countries.
The HKTDC Export Confidence Index 4Q25 reinforces this positive outlook, with both the Current Performance Index (51.4) and Expectation Index (51.9) remaining above the 50-point threshold, signaling anticipated growth. Market analysis reveals that the Chinese mainland (57.2) and ASEAN bloc (57.0) are viewed as having significant growth potential, while the US (38.0) faces declining confidence due to trade uncertainties. Industry-wise, jewellery (54.8), electronics (52.4), timepieces (51.6), and equipment/materials (51.1) sectors show expansionary expectations. However, challenges such as rising labour costs (53.9%), logistics issues (38.8%), and declining overseas orders (38.2%) could pose risks. For more details, refer to the original release on www.newmediawire.com and the HKTDC Research website.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, Hong Kong Exports to Grow 8-9% in 2026, Fueled by AI Demand
