Exports value drops 8.8% YoY to $286.2b in February

The weak external environment contributed to the decrease.

The value of goods exports fell further in February 2023, declining 8.8% YoY to $286.2b.

The  Census & Statistics Department (C&SD) attributed the decrease in export value to the  “weak external environment.”

By major commodity, exports value dropped $20.9b or -13.4% for "electrical machinery, apparatus and appliances, and electrical parts thereof”; by $5.5b or -16.5% for "office machines and automatic data processing machines"; by $4.7b or -36.3% for "professional, scientific and controlling instruments and apparatus."

On the other hand, an increase was registered in the value of total exports of "non-ferrous metals,” by $3.4b  or 109.3%.

Data from the C&SD also showed that total exports to Asia dropped 10.6% YoY.

Apart from destinations in Asia, decreases were registered in the value of total exports to some major destinations in other regions like Germany (-22.6%).

The value of imports of goods likewise dipped in January, declining 4.1% YoY to $331.6b.

With a decline in exports and imports, the trade deficit clocked in at $71.0b. The trade deficit is equivalent to 11.0% of the value of imports.

“Taking the first two months of 2023 together to remove the distortion caused by the different timing of Lunar New Year, the value of merchandise exports fell notably from a year earlier amid the weak external environment,” C&SD said.

“Looking ahead, the expected growth moderation in the advanced economies will continue to weigh on Hong Kong's export performance in the near term. 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,” it added.