Hong Kong's January trade deficit narrowed to $27.5b

Why are we not surprised?

According to Moody's Analytics, Hong Kong’s monthly trade deficit narrowed to HK$27.5 billion in January, following December’s HK$48 billion shortfall, an improvement that generally occurs at the start of each year. The Lunar New Year occurred in January in 2012 but in February this year. 

There were two more working days in January this year compared with last year, which caused export and import growth to accelerate in January.

January’s merchandise trade deficit of HK$27.5 billion follows December’s HK$48 billion shortfall.

Here's more from Moody's Analytics:

Exports grew 17.6% y/y in December, after December’s 14.4% gain.

By destination, exports to China—which account for more than half of the total—grew 29% y/y in January, after December’s 17.4% gain. Exports to the U.S. shrank 0.9% y/y in January, after December’s 12.8% advance. In Europe, shipments to Germany rose 2.2% y/y, while exports to the U.K. grew 0.5% y/y.

Imports gained 23.9% y/y in January, following December’s 11.9% rise.

Imports from China—which account for almost half of total imports—added 34.2% y/y in January, after December’s 20.3% rise. Shipments from Taiwan grew 32.7% y/y in January, after December’s 3.3% gain, while imports from Singapore rose 27.9% y/y. Inbound shipments from the U.S. rose 20.6% y/y, after December’s 0.3% drop.