Hong Kong’s exports decline in October, near term outlook continues to hinge on global demand conditions

Hong Kong’s Census and Statistics Department, today, released the country’s external merchandise trade statistics for the month of October. According to the statistics department, the country’s total goods exports dropped 1.8 percent, whereas the values of goods imports rose 0.5 percent year-on-year.

The total value of exports of goods, which comprises re-exports and domestic exports, dropped on a year-on-year basis by 1.8 percent to HKD 313.7 billion, following a rise of 3.6 percent recorded in September. In this total, the value of re-exports fell 1.9 percent to HKD 310.1 billion in October, whereas the value of domestic exports rose 1.1 percent to HKD 3.6 billion.

Meanwhile, the values of goods imports rose 0.5 percent year-on-year to HKD 350.9 billion in October, following a rise of 4.1 percent year-on-year recorded in September. Hong Kong’s trade deficit came in at HKD 37.2 billion in October 2016, equivalent to 10.6 percent of the value of imports of goods.

For the January to October period as a while, the total exports of goods fell 2.5 percent year-on-year. Within this, the value of re-exports dropped 2.4 percent, whereas the value of domestic exports fell 10.2 percent. Meanwhile, imports of goods fell 2.9 percent in the January to October period. The country recorded a trade deficit of HKD 341 billion in the initial 10 months of 2016 as a whole.

A Hong Kong government spokesman noted  that the value of merchandise reverted to a small decline over a year ago in October, after have recorded growth in the earlier two months, with mixed performance throughout major markets.

“Looking ahead, Hong Kong's export outlook in the near term will still hinge on global demand conditions. The external trading environment is still subject to uncertainties, including those associated with the US policy directions after the general election”, added the spokesman.