June exports surge 26.7% year-on-year
Barges equipped with cranes are moored in Victoria Harbour, Hong Kong earlier this month. The city’s exports rose 26.7 percent in June, year-on-year. Jerome Favre / Bloomberg news |
A 31% jump in imports results in a trade deficit of more than HK$30 billion in the same month
According to government figures, Hong Kong exports and imports grew substantially during the month of June because of robust inter-regional trade in Asia. However, experts expect the momentum to slow in the second half of the year, given economic instability in the United States and Europe.
Hong Kong exports rose 26.7 percent to HK$267.6 billion in June, from a year earlier, the Census and Statistics Department reported on Tuesday. Total imports increased 31 percent to HK$298.2 billion year-on-year, leaving a trade deficit of more than HK$30 billion.
The data for May shows a 24.4 percent increase in exports and a 29.7 percent increase in imports, from a year earlier.
“The amount of exports grew significantly in June, a reflection of the robust growth of Asian markets and the gradual recovery of advanced economies,” said a government spokesman.
The boost to export growth was caused mainly by a 79.9 percent rise in telecommunications and sound recording equipment, a 28 percent jump in electrical machinery and appliances and a 17.7 percent increase in office machines.
Strong export growth has been observed in the most important parts of Asia, such as the mainland. Such areas benefit from the robust trade that accompanies strong economic growth in Asia.
As for exports to the Netherlands and the US, they showed the fastest growth outside Asia, recovering strongly from the 2009 slump, with a year-on-year increase of 42.4 percent for the Netherlands and 29.4 percent for the US.
Total exports for the first half of 2010 gained 25.1 percent and imports increased by 31.9 percent over the same period in 2009.
“Given the austerity measures that will be implemented in many European economies, along with a fading boosting effect from earlier stimulus measures in the US, uncertainty in external trading remains high,” the spokesman said.
Paul Tang, chief economist at Bank of East Asia, believes that we will see weaker trade figures in July as a result of the European debt crisis and a slowing US economy.
“After having recorded growth for eight consecutive months since last November, Hong Kong exports will probably begin to decrease from July onward, but the city should still manage to post another positive growth,” said Tang.
The Ministry of Commerce said last week that the mainland export growth could slow in the second half of the year, given that growing instability in the European economy could weaken demand for imported goods. None of this bodes well for Hong Kong, one of China’s main trade ports.
China Daily
(HK Edition 07/28/2010 page3)
http://www.chinadaily.com.cn/hkedition/2010-07/28/content_11057816.htm