Export outlook poor for the rest of the year

Domestic exports plunged 16.8% from January to July compared to the year earlier as the economy continues to suffer from the economic slowdown.

Comparing the first seven months with the same period last year, the value of domestic exports fell 16.8% while the value of goods re-exports increased 0.1%. Taken together, the value of total goods exports fell 0.3%. In the same time, the value of goods imports increased 0.9%.

The Census & Statistics Department said Hong Kong's near-term export outlook remains bleak. It noted that delicate economic and fiscal conditions in the advanced economies and their negative spillovers to Asia will continue to cloud the global trading environment.

In July, the value of total goods exports dropped 3.5% to HK$276.2 billion year-on-year while the value of goods imports fell 1.8%, said the department. Domestic exports, however, rise 0.3%. A visible trade deficit of $40.1 billion, equivalent to 12.7% of the value of goods imports, was recorded in July..

Comparing the three-month period ending July with the preceding three months on a seasonally adjusted basis, the value of goods re-exports fell 3.8%, while that of domestic exports fell 1.8%. Taken together, the value of total goods exports fell 3.7%.

Hong Kong's exports largely consists of re-exports to mainland China, whose export contraction is taking a toll on the local exports sector. The mainland's recent exports to Europe shrunk by 20% and this explains why Hong Kong's re-exports to the mainland are also falling