Hong Kong’s merchandise trade sector saw robust expansion in May, buoyed by strong global demand for artificial-intelligence-related electronic products, with major export markets registering notable growth.

The total value of merchandise goods exports in May soared 40.8 percent year-on-year to HK$611.2 billion ($78 billion), after an annual increase of 42.9 percent in April, according to Census and Statistics Department data released on Thursday.

Comparing the three-month period ending May with the preceding three months, the value of total exports of goods increased 17.1 percent.

For the first five months of 2026, the value of total exports of goods was HK$2.77 trillion, representing a growth of 36.2 percent compared with the same period last year.

The city’s external trade sector has seen 27 months of consecutive growth since March 2024.

The special administrative region’s exports to Singapore soared 114.2 percent, followed by Taiwan (90.2 percent), Vietnam (67.8 percent), the United Kingdom (61.7 percent), Thailand (56 percent), the United States (55.7 percent), and the Chinese mainland (48.5 percent). The city’s total exports to Asia in the period as a whole expanded 44.6 percent.

“Looking ahead, the still-vibrant global demand for AI-related electronic products should continue to support Hong Kong's merchandise trade performance,” a government spokesman said in a Thursday statement.

The spokesman added that headwinds remain even though the recent easing of geopolitical tensions in the Middle East has provided short-term relief to the global economic outlook. “The government will stay vigilant to external risks,” he said.

Bruce Pang, the Hong Kong Trade Development Council’s director of research, expressed optimism about the city’s exports outlook. “Hong Kong’s export performance continues to be underpinned by robust electronics demand, fueled by the ongoing surge in AI adoption worldwide,” he said.

“Overall, Hong Kong’s trade outlook will continue to hinge on several factors, including the technology upcycle, geopolitical developments, energy prices and global end‑market demand,” he added.

Bank of East Asia Chief Economist Tristen Zhuo said he expects Hong Kong’s exports to remain strong, fueled by surging demand for AI-related hardware.