Hong Kong recorded its narrowest trade deficit in over a year in July as exports surged nearly 51% year-over-year, far exceeding economist estimates. Government data released Tuesday showed the shortfall shrank to just HK$4.9 billion ($624 million), a dramatic improvement from the HK$89.1 billion gap seen in March. Export growth held up better than expected, driven by shipments to mainland China reaching a record high.

Imports grew less than forecast, further contributing to the sharp narrowing of the deficit. The figures suggest resilience in Hong Kong's external trade sector despite global economic headwinds. The Kwai Tsing Container Terminals, photographed by Leung Man Hei, remain a critical hub for this trade activity.

Economists surveyed by Bloomberg had anticipated a wider deficit, making the July data a significant positive surprise for the city's economic outlook.