Hong Kong Trade Deficit Highest in 3 Months


Hong Kong trade gap increased by 12.6 percent to HKD 44.41 billion in September of 2017 from a HKD 39.7 billion shortfall in the same month of the previous year, as imports rose faster than exports. Considering the January-September period, the trade deficit widened to HKD 338.0 billion from HKD 304.2 billion in the same period of the previous year, with imports increasing 8.8 percent and exports rising 8.5 percent.

Year-on-year, imports surged 9.7 percent to HKD 403.4 billion, after a 7.7 percent gain in the previous month. Purchases increased mostly from South Korea (32.3 percent), the Philippines (30.3 percent), India (19.8 percent), Malaysia (14.3 percent) Singapore (14.0 percent) and Taiwan (11.6 percent).

By commodity, imports grew mostly for: electrical machinery, apparatus and appliances, and electrical parts thereof (14.6 percent); office machines and automatic data processing machines (15.0 percent); miscellaneous manufactured articles, jewellery, goldsmiths´ and silversmiths´ wares in particular (16.6 percent). Meanwhile, a drop was recorded for telecommunications and sound recording and reproducing apparatus and equipment (-3.0 percent).

Exports rose 9.4 percent to HKD 358.7 billion, after a 7.4 percent gain in the preceding month. Exports to Asia as a whole grew by 9.6 percent, mainly to India (30.8 percent), Japan (18.1 percent), Singapore (16.9 percent), Vietnam (16.9 percent), Thailand (16.3 percent), Taiwan (12.0 percent) and China (7.5 percent). Among destinations outside Asia, increases were registered for Germany (39.0 percent), the Netherlands (14.3 percent), the US (4.1 percent) and the UK (1.2 percent). 

By commodity, sales expanded for: electrical machinery, apparatus and appliances, and electrical parts thereof (10.1 percent); office machines and automatic data processing machines (16.4 percent); miscellaneous manufactured articles, jewellery, goldsmiths´ and silversmiths´ wares in particular (17.7 percent). In contrast, exports of articles of apparel and clothing accessories decreased 4.2 percent. 

A Government representative summed up that merchandise exports expanded further in the month of September and sales to Asia remained strong despite regional trade flows. Exports to the US and the EU also posted an improvement. Additionally, the spokesman forecasted that the global economic upturn is expected to boost Hong Kong´s exports in the near term. Yet, the uncertain position of the US dollar and possible changes in policies of major central banks pose a concern about results in sales in the near future. Besides, the possible rise in protectionist sentiment, Brexit-related negotiations and elevated geopolitical tensions in various regions are also fields of interest.

Hong Kong Trade Deficit Highest in 3 Months


Statistics Department of Hong Kong | Marta Dubiel | marta.dubiel@tradingeconomics.com
10/26/2017 10:48:00 AM