2023.03.2711:29:00UTC+00Hong Kong Trade Gap Widens Sharply As Exports Plunge 8.8%

Hong Kong's foreign trade deficit increased markedly in February, as exports fell more rapidly than imports, data from the Census and Statistics Department showed on Monday.

The visible trade balance showed a deficit of HK$45.4 billion, up from HK$32.1 billion in the same month last year. Further, this was the biggest shortfall since June 2022.

The deficit also rose considerably from HK$25.3 billion in January.

The visible trade gap of HK$45.4 billion was equivalent to 13.7 percent of the value of imports.

The annual decline in exports was 8.8 percent in February, but much slower than the 36.7 percent slump in January.

Imports also declined at a slower rate of 4.1 percent yearly in February, after a 30.2 percent fall in the previous month.

In February, total exports to Asia as a whole declined by 10.6 percent. Within this, shipments to Japan plunged the most, by 23.1 percent, followed by India with an 18.5 percent fall.

"Looking ahead, the expected growth moderation in the advanced economies will continue to weigh on Hong Kong's export performance in the near term," a government spokesman said.

"Nonetheless, the accelerated recovery of the Mainland economy, coupled with the removal of cross-boundary truck movement restrictions between Hong Kong and the Mainland, should alleviate part of the pressure."