Hong Kong Trade Gap Widens Sharply in July


Hong Kong trade gap increased 59.1 percent year-on-year to HKD 47.1 billion in July of 2018 from HKD 29.6 billion in the same month a year earlier. Imports rose 14 percent to HKD 406.2 billion from HKD 356.2 billion, while exports advanced at a softer 10 percent to HKD 359.1 billion from HKD 326.6 billion. A government spokesman commented that, looking ahead, downside risks in the external trading environment have increased markedly in recent months. While the impacts of the US-China trade conflicts on Hong Kong's export performance appeared to be limited so far, they could become more apparent later this year.

Year-on-year, imports went up 14 percent to HKD 406.2 billion from a 4.4 percent gain in the previous month. Imports were driven by higher purchases of electrical machinery, apparatus & appliances & electrical parts thereof (18 percent); office machines & automatic data processing machines (26.3 percent) and miscellaneous manufactured articles (23.1 percent), namely jewelry, goldsmiths' and silversmiths' wares. In contrast, purchases fell for telecommunications & sound recording & reproducing apparatus & equipment (-0.1 percent).

Purchases advanced mainly from Malaysia (+111.5 percent), South Korea (+26.4 percent), the USA (+15.1 percent), China (+10.2 percent), Japan (+10.1 percent), India (+9.7 percent) and Philippines (+9.1 percent).

Exports rose 10 percent to HKD 359.1 billion, following a 3.3 increase in June. Sales to Asia as a whole surged 10.6 percent, in particular to Malaysia (+44 percent), Vietnam (+23.3 percent), China (+12.8 percent), India (+11.2 percent) and South Korea (+6.8 percent). Meanwhile, decreases were recorded in exports to Taiwan (-15.6 percent) and Japan (-7.5 percent).

By commodity, shipments increased for electrical machinery, apparatus & appliances & electrical parts thereof (18.4 percent); office machines & automatic data processing machines (16.3 percent) and power generating machinery & equipment (39.4 percent). On the other hand, exports dropped for articles of apparel & clothing accessories (-1.8 percent).

Considering the first seven months of the year, exports went up 9.4 percent year-on-year and imports jumped 11.1 percent, recording a trade deficit of HKD 321.5 billion.

Hong Kong Trade Gap Widens Sharply in July


Census and Statistics Department of Hong Kong | Gabriela Costa | gabriela.costa@tradingeconomics.com
8/27/2018 9:24:06 AM