Hong Kong Trade Deficit Widens in August


Hong Kong trade gap increased by 10.6 percent to HKD 35.53 billion in August of 2017 from a HKD 32.10 billion shortfall in the same month of the previous year, as imports rose at a faster 7.7 percent and exports advanced 7.4 percent. Considering the January to August period, the trade deficit widened to HKD 293.1 billion from HKD 264.8 billion in the same period of the previous year, with imports increasing 8.6 percent and exports rising 8.4 percent.

Year-on-year, imports surged 7.7 percent to HKD 368.2 billion in August of 2017, after a 5.5 percent gain in the previous month. Increases were recorded from major suppliers, namely the Philippines (35.7 percent); Korea (30.9 percent); Singapore (30.2 percent); Malaysia (15.4 percent); Thailand (12.9 percent) and China (3.9 percent). Meanwhile, purchases declined from India (-7.8 percent).

By commodity, imports grew for: electrical machinery, apparatus and appliances, and electrical parts thereof (13.1 percent); office machines and automatic data processing machines (15.4 percent); petroleum, petroleum products and related materials (62.6 percent). In contrast, a decrease was registered in purchases of articles of apparel and clothing accessories (-7.6 percent).

Exports rose 7.4 percent to HKD 332.7 billion in August of 2017, after a 7.7 percent gain in the preceding month. Exports to Asia as a whole grew 10 percent, mainly to Taiwan (23.6 percent); Thailand (22.1 percent); the Philippines (15.9 percent); Japan (11.4 percent); China (10.8 percent) and Vietnam (5.7 percent) while fell to Korea (-8.3 percent). Apart from destinations in Asia, an increase was reported to Germany (6.5 percent) while decreases were seen to the United Kingdom (-18.2 percent) and the United States (-5.5 percent).

By commodity, exports advanced for: electrical machinery, apparatus and appliances, and electrical parts thereof (11 percent); office machines and automatic data processing machines (18.9 percent) and telecommunications and sound recording and reproducing apparatus and equipment (3 percent). However, sales of articles of apparel and clothing accessories fell 13.1 percent.

A Government spokesman noted that merchadise exports grew notably further in August, boosted by strengthened global demand. The spokesman commented also that looking ahead, the improvement in global economic conditions should continued to support Asia and Hong Kong's export performance. However, the external environment is still under various uncertainties, particularly those arising from the US monetary policy normalisation as well possible actions by other major central banks, Brexit and possible rise of protectionist sentiment and elevated geopolitical tensions in various regions.

Hong Kong Trade Deficit Widens in August


Statistics Department of Hong Kong lLuisa Carvalho | luisa.carvalho@tradingeconomics.com
9/26/2017 9:40:04 AM