Hong Kong Trade Deficit Narrows Slightly in June

Hong Kong reported a HKD 45.6 billion trade deficit in June of 2016, 0.41 percent lower than a HKD 45.7 billion gap a year earlier. Exports shrank 1 percent, falling for the fourteenth straight month while imports declined 0.9 percent, the least since February of 2015. Both exports and imports have been falling due to sluggish global demand.

Exports declined to HKD 296.5 billion after edging down 0.1 percent in May. Sales to Asia as a whole grew 0.5 percent, mainly to Taiwan (+10.1 percent), India (+9.2 percent), China (+1.8 percent) and South Korea (+0.9 percent). On the other hand, decreases were recorded for Singapore (-9.4 percent), Thailand (-9.1 percent), Japan (-8.2 percent) and Malaysia (-8.2 percent). Outside Asia, shipments to the United Kingdom (-10.3 percent) and the US (-7.3 percent) fell while those to Germany (+1 percent) increased. By product, sales declined for office machines and automatic data processing machines (-10.6 percent); miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares) (-15.4 percent) and articles of apparel and clothing accessories (-16.4 percent). 

Imports went down to HKD 342.1 billion. It is the smallest decline in seventeen straight months of falls. Imports from some major suppliers declined: Switzerland (-18.6 percent), the US (-17.9 percent) and Malaysia (-9.2 percent) but increases were registered from South Korea (+17.2 percent), Singapore (+11.7 percent), India (+4.5 percent) and Thailand (+3.4 percent). Imports from China edged up 0.2 percent. 

For the first half of 2016, exports of goods dropped 3.9 percent over the same period in 2015 and imports of goods slumped 5.6 percent. A visible trade deficit of HKD 199.6 billion, equivalent to 10.8 percent of the value of imports was recorded. 

Considering the second quarter only, exports increased 6.9 percent from the previous period. Within this total, the value of re-exports rose 7.1 percent while domestic exports went down 3.6 percent. Meanwhile, imports of goods increased by 4.5 percent.

Hong Kong Trade Deficit Narrows Slightly in June

Census and Statistics Department | Joana Taborda | joana.taborda@tradingeconomics.com
7/26/2016 12:33:24 PM