October trade jumps but deficit widens on strong import growth

Electronics-led demand lifted exports 17.5% and imports 18.3% YoY.

Hong Kong’s merchandise trade posted a sharp rebound in October, with exports and imports both registering double-digit gains even as the trade deficit widened, according to figures released by the Census and Statistics Department.

Total exports rose 17.5% year on year (YoY) to $461.8b, extending September’s 16.1% increase. Imports climbed 18.3% to $501.7b after growing 13.6% in the previous month. The trade deficit widened to $39.9b, equivalent to 8.0% of imports. For January to October, exports expanded 13.8% and imports 13.6%, resulting in a cumulative deficit of more than $334b.

Electronics continued to power overall growth. Exports of electrical machinery increased by 16.1%, and telecommunications equipment exports rose $17.6b. On the import side, electrical machinery climbed 21.5%, whilst telecommunications equipment advanced $23.2b. For the first ten months of the year, exports of electrical machinery grew to $284b.

Regional markets drove much of the surge. Exports to Asia jumped 15.6%, led by Malaysia, Vietnam, Taiwan, India, and the Chinese Mainland. Outside the region, shipments to the Netherlands and USA also strengthened. 

Import growth was similarly broad-based, with Vietnam, UK, Malaysia, Singapore, and the Mainland recording increases. Imports from the USA fell 10.4%, according to the report.

The Hongkong government said exports to most major markets saw robust gains, particularly in high-value electronics. Whilst easing global trade policy uncertainty and sustained demand for electronic products are expected to support near-term momentum, C&SD added that lingering trade barriers and geopolitical tensions could still weigh on the outlook.