China Security Times (SecuTimes or STCN) recently reported that, due to economic slowdown and weak market demand, Hong Kong’s foreign trade continues to shrink. On July 25, the Census and Statistics Department of the Hong Kong Government released the external merchandise trade statistics for June: Hong Kong’s overall exports in June fell by 11.4 percent year-over-year.
This is the sixth consecutive month this year that Hong Kong’s exports have declined. In the first half of the year, exports fell by 15.5% year-over-year, resulting in a reported tangible trade deficit of RMB 231.6 billion yuan (around US$32.4 billion). A spokesman for the Hong Kong government said that, in light of weak external demand, the exports in June fell further year-over-year. Exports to mainland China, the United States and the European Union all decreased, while exports to most other major Asian markets saw record declines as well.
Looking ahead, the influence of slowing global economic growth means Hong Kong’s export performance will continue to face significant pressure in the short term. Hong Kong’s exports to all major Asian regions showed negative growth. The Asian regions to which exports fell most sharply include Japan (down 24 percent), Singapore (down 23.5 percent), Taiwan (down 19.2 percent), and Mainland China (down 19.2 percent), and India (down 17.3 percent).
Hong Kong’s major export products, especially electrical machinery, instruments, appliances and parts, office machines, automatic data processing instruments, as well as communication, recording and audio equipment and instruments, were dominated by declines. In addition to the affect of the global economy, the economic performance of the Mainland has also negatively impacted Hong Kong’s foreign trade.
Source: STCN, July 26, 2023