Hong Kong Trade Gap Widens in June


The trade deficit in Hong Kong widened to HKD 55.2 billion in June 2019 from HKD 54.1 billion in the same month of the previous year. Exports dropped 9 percent over a year earlier, the largest decline since February 2016 and imports fell at a softer 7.5 percent.

Year-on-year, exports went down 9 percent to HKD 309.6 billion in June 2019, mostly due to lower sales of electrical machinery, apparatus & appliances, and electrical parts thereof (-8.9 percent); telecommunications & sound recording and reproducing apparatus & equipment (-13.2 percent); and office machines & automatic data processing machines (-21.2 percent). Meanwhile, sales of miscellaneous manufactured articles increased 7.7 percent.

Exports to Asia as a whole dropped 8.4 percent, namely Thailand (-13.6 percent), the Mainland (-10.6 percent), South Korea (-8.4 percent), Malaysia (-7.8 percent), and Japan (-6.5 percent). On the other hand, exports went up to the Philippines (33.2 percent) and Taiwan (13.9 percent). Apart from destinations in Asia, export decreased to Germany (-14.4 percent) and the US (-6.6 percent).

Imports declined 7.5 percent to HKD 364.8 billion, mainly due to lower purchases of electrical machinery, apparatus & appliances, and electrical parts thereof (-8.9 percent); telecommunications & sound recording and reproducing apparatus & equipment (-14.7 percent); and office machines & automatic data processing machines (-17.5 percent). In contrast, purchases of power generating machinery and equipment advanced 27.8 percent.

Among major trading partners, imports fell from South Korea (-25.7 percent), India (-17.4 percent), Taiwan (-10.8 percent),  Malaysia (-9 percent), Thailand (-8.2 percent), and the Mainland (-2.3 percent). Meantime, imports rose from Switzerland (2.4 percent).

A Government spokesman said that the year-on-year decrease in the value of merchandise exports enlarged to 9.0% in June, as the soft global economic environment and continued US-Mainland trade tensions put further strains on manufacturing activities and trade flows in Asia. Exports to most major markets recorded declines of varying degrees. Looking ahead, the near-term performance of Hong Kong's merchandise exports will remain constrained by the softening global economy and uncertainties arising from US-Mainland trade tensions and other external developments. The Government will stay vigilant.

Hong Kong Trade Gap Widens in June


Census and Statistics Department of Hong Kong | Stefanie Moya | stefanie.moya@tradingeconomics.com
7/25/2019 8:52:33 AM