Hong Kong’s exports down for 14th straight month

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View_from_Victoria_PeakOverall exports from Hong Kong fell 1% in value in June year-on-year, the 14th consecutive month of contraction, while the value of imports dropped 0.9%, according to the Census and Statistics Department.

Total goods exports decreased to HKD296.5 billion (USS38.2 billion) from a year earlier, after a year-on-year decrease of 0.1% in May.

Of this total, the value of reexports decreased 0.8% to HKD292.9 billion, while domestic exports decreased 12.9% to HKD3.6 billion. The value of goods imports fell 0.9% to HKD342.1 billion, after a year-on-year decrease of 4.3% in May.

A visible trade deficit of HKD45.6 billion, equivalent to 13.3% of goods imports value, was recorded in June.

On performance of exports to key destinations, Hong Kong’s total shipments to Asia grew by 0.5% in June year-on-year. In this region, increases were registered in Taiwan, India, China, and South Korea. On the other hand, decreases were recorded in the value of exports to Singapore, Thailand, Japan, and Malaysia.

In other destinations, decreases in exports were registered particularly to the UK and the U.S., but an uptick was noted in Germany.

On a quarter-on-quarter seasonally adjusted basis, total goods exports increased in value by 6.9% in the second quarter. Of this, reexports increased by 7.1%, while domestic exports fell 3.6%. The value of goods imports increased by 4.5%.

The department said merchandise exports declined in value slightly in June from a year earlier amid sluggish global demand, with mixed performance across major markets.

But the year-on-year rate of decline in merchandise exports value narrowed considerably from 6.8% in the first quarter to 1.2% in the second quarter, indicating a relative improvement in performance in recent months, it added.

The agency said that looking ahead, the external trading environment remains challenging, given the uncertainties following the UK’s vote in favor of leaving the EU, the slow recovery in the advanced markets, diverging monetary policy among major central banks, and geopolitical tensions.

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