Hong Kong Trade Gap Narrows in July


The trade deficit in Hong Kong narrowed to HKD 32.2 billion in July 2019 from HKD 47.1 billion in the corresponding month of the previous year. Exports fell 5.7 percent over a year earlier and imports declined at a faster 8.7 percent.

Year-on-year, imports decreased 8.7 percent to HKD 370.8 billion in July, mainly due to lower purchases of electrical machinery, apparatus & appliances, and electrical parts thereof (-9.6 percent); office machines & automatic data processing machines (-14.2 percent); and non-metallic mineral manufactures (-20.5 percent). On the other hand, imports of power generating machinery and equipment rose 5.4 percent.

Among major trading partners, imports fell from Malaysia (-30.9 percent), South Korea (-29.3 percent), Singapore (-20.7 percent), Switzerland (-11.7 percent), India (-11.6 percent), the US (-10.7 percent) and the Mainland (-4 percent).

Exports declined 5.7 percent to HKD 338.6 billion, mostly due to lower sales of electrical machinery, apparatus & appliances, and electrical parts thereof (-6.9 percent); office machines & automatic data processing machines (-8.7 percent); and telecommunications and sound recording and reproducing apparatus and equipment (-4.5 percent). In contrast, sales of power generating machinery and equipment jumped 50.5 percent.

Exports to Asia as a whole fell 5.5 percent, namely Malaysia (-14.7 percent), Vietnam (-8.6 percent), the Mainland (-7.1 percent), Thailand (-7.0 percent) and India (-5.6 percent). Meanwhile, sales advanced to the Philippines (26.0 percent) and Taiwan (21.1 percent). Apart from destinations in Asia, export decreased to Germany (-13.0 percent) and the US (-10.3 percent) while increased to the UK (4.1 percent).

A Government spokesman said that the value of merchandise exports fell further by 5.7% year-on-year in July, affected by softening global economic growth and US-Mainland trade tensions. These unfavourable external developments also continued to pose a drag on manufacturing and trading activities in many Asian economies. Against this background, merchandise exports to many major markets registered declines of varying degrees in July. Looking forward, in the face of the difficult external environment and the further escalation of US-Mainland trade tensions in September, Hong Kong's near-term export performance should remain sluggish or may even weaken further. The Government will continue to monitor the situation closely.

Hong Kong Trade Gap Narrows in July


Census and Statistics Department of Hong Kong | Stefanie Moya | stefanie.moya@tradingeconomics.com
8/26/2019 8:55:56 AM