2023.08.2411:04:00UTC+00Hong Kong Trade Gap Widens In July

Hong Kong's trade deficit increased in July from a year ago as exports fell faster than imports, data from the Census and Statistics Department showed on Thursday.

The visible trade deficit rose to HK$30.0 billion from HK$27.55 billion in the same month last year.

However, this was well below the shortfall of HK$56.6 billion in June. The expected deficit was HK$32.7 billion.

The visible trade gap of HK$30.0 billion was equivalent to 14.4 percent of the value of imports.

The annual decline in exports was 9.1 percent in July, slower than the 11.4 percent fall in June. The overall decline in shipments was attributed to a weak external environment.

Total exports to Asia as a whole dropped by 11.6 percent. Within this, shipments to the Philippines plunged the most, by 29.6 percent, followed by Singapore with a 24.6 percent decline.

When compared to other main export destinations, shipments to Germany and the United States decreased by 29.6 percent and 5.8 percent, respectively.

Imports declined at a slower pace of 7.9 percent versus a 12.3 percent decrease in the prior month.

"Looking ahead, the difficult external environment will continue to weigh on Hong Kong's exports performance in the near term," a government spokesman said.