FX.co ★ Hong Kong’s Trade Deficit Narrows Sharply in July, Easing from Record June Gap

Hong Kong’s trade deficit contracted dramatically in July 2026, offering a measure of relief after a deeply negative reading in the previous month. The trade balance improved to a deficit of HKD 4.9 billion in July, compared with a much wider shortfall of HKD 52.0 billion recorded in June 2026.

The latest figures, updated on 25 August 2026, indicate a substantial month-on-month narrowing of the external gap. While the trade balance remains in negative territory, the sharp reduction in the deficit suggests a notable shift in the city’s trade dynamics between June and July, which will be closely watched by markets and policymakers monitoring Hong Kong’s external sector performance.