Hong Kong Trade Gap Widens In July

(RTTNews) - Hong Kong's foreign trade deficit increased in July from a year ago as imports grew faster than exports, data from the Census and Statistics Department showed on Tuesday.

The trade deficit rose to HK$34.1 billion in July from HK$21.8 billion in the same month last year. In June, the trade shortfall was HK$58.9 billion.

The visible trade deficit of HK$34.1 billion was equivalent to 7.1 percent of the value of imports.

The annual increase in exports was 14.3 percent in July, versus an 11.9 percent growth in June. Exports to the mainland of China alone expanded 16.1 percent from last year.

Total exports to Asia as a whole grew by 19.3 percent. Within this, shipments to Taiwan advanced the most, by 91.9 percent. This was followed by Malaysia, with a 48.3 percent jump in exports.

Apart from destinations in Asia, outflows to the Netherlands declined sharply, by 42.1 percent, and those to the United States fell by 7.6 percent.

Imports logged an annual increase of 16.5 percent in July, faster than the 11.1 percent gain in the prior month.

"Looking ahead, steady economic growth in Asia, in particular the Mainland, as well as Hong Kong's enhanced economic and trade ties with different markets, should continue to provide support to Hong Kong's merchandise trade performance," a government spokesman said.

"Yet, the United States' elevated tariff rates and lingering uncertainty surrounding its tariff policy may begin to weigh on international trade flows in the near term."