Hong Kong Trade Gap Narrows in September

The trade deficit in Hong Kong narrowed to HKD 31.6 billion in September of 2019 from HKD 47.7 billion in the corresponding month of the previous year. Exports fell 7.3 percent over a year earlier and imports declined at a faster 10.3 percent.
Census and Statistics Department of Hong Kong | rafael.gonzalez@tradingeconomics.com 10/24/2019 9:02:24 AM
Exports fell 7.3 percent to HKD 347.7 billion, mainly due to lower sales of office machines and automatic data processing machines (-18.9 percent); telecommunications and sound recording and reproducing apparatus and equipment (-9.9 percent); and non-metallic mineral manufactures (-17.4 percent). On the other hand, sales of power generating machinery and equipment advanced 66.3 percent.

Exports to Asia as a whole declined 4.5 percent, in particular Korea (-25.9 percent), Thailand (-11.1 percent), Singapore (-10.9 percent), India (-10.8 percent), the Mainland (-4.6 percent) and Japan (-4.1 percent). In contrast, sales increased to the Philippines (21.1 percent) and Taiwan (12.3 percent). 

Apart from destinations in Asia, exports decreased to the US (-24.3 percent), Germany (-12.8 percent) and the UK (-6.8 percent).

Imports went down 10.3 percent over a year ago to HKD 379.3 in September, mostly due to lower purchases of electrical machinery, apparatus & appliances, and electrical parts thereof (-6.4 percent); office machines & automatic data processing machines (-24.8 percent); and telecommunications and sound recording and reproducing apparatus and equipment (-10.7 percent). Meanwhile, imports of power generating machinery and equipment jumped 20.7 percent.

Among major trading partners, imports dropped from Korea (-26.3 percent), India (-24.3 percent), Singapore (-17.7 percent), Thailand (-17.4 percent) and the Mainland (-9.2 percent). Meanwhile, imports went up from Switzerland (16.0 percent) and Taiwan (3.1 percent). 

A Government spokesman said that merchandise exports weakened further in September to show an enlarged year-on-year decline, reflecting the slack in global demand and heightened US-Mainland trade tensions in that month. Most major markets continued to show subdued performance. Looking ahead, as the strains on global trade flows arising from a slowing global economy and various uncertainties, including the development of US-Mainland trade relations, will likely persist for some time, the near-term outlook for Hong Kong's merchandise exports remains challenging. The Government will continue to monitor the situation closely.

Hong Kong Trade Gap Narrows in September