Hong Kong exports fall as global demand slump weighs on economy

HONG Kong’s exports fell in May for a 13th consecutive month, as weak demand for goods from China and the world continue to pose challenges for the financial hub’s economic outlook. 

Overseas shipments dropped 15.6 per cent from a year earlier, the Census and Statistics Department said on Tuesday (Jun 27).

That was worse than a median estimate for an 11.1 per cent decrease in a Bloomberg survey of economists. 

Imports fell 16.7 per cent from a year ago, exceeding the median estimate of a 10.2 per cent decline in a Bloomberg survey. The trade deficit was HK$26.4 billion (S$4.54 billion).

Exports were weak across the board. Shipments to China fell 17.5 per cent in May from the prior year, worse than April’s 12.9 per cent decline. The world’s second-largest economy has faced concerns about its slowing recovery in recent weeks.

Exports to India fell 30.7 per cent, while those to the US, Japan and Korea also recorded double-digit drops.

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“The rate hikes from Hong Kong’s major trade partners have hampered demand”, contributing to the decline in exports, said Samuel Tse, an economist at DBS. Another factor is that cargo and capacity flight in Hong Kong are also still lower than pre-pandemic levels, he said.

Trade performance in the latter half of the year will depend on “whether the Chinese economy rebounds on stimulus and other trading partners’ factory activities resume,” he added.

The city’s exports have struggled over the past year because of waning demand from China and the rest of the world, becoming a key challenge to the financial hub as it recovers post-pandemic. 

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