Exports to grow by 4% to 6% in 2024

Exporters will focus on cash flow management next year.

Exports will likely grow by 4% to 6% in 2024, following the 11% decline from January to October 2023, according to the HKTDC Export Index.

Exporters draw a more positive outlook from the increasing demand for electronic components driven by demand for AI-enabled devices and other finished products.

The electronics sector accounts for 70% of all Hong Kong exports.

Export growth is set to come after continuously softened export sentiment this year.

In 4Q23, exporter sentiment declined in major sectors, including electronics (34.8; down 6.0 points).

Meanwhile, economic slowdowns (84.7%), geopolitical tensions (62.5%), and rising transport costs (41.8%) remain the top concerns of exporters for 2024.

Next year, exporters will focus on ensuring sufficient cash flow, with over 50% expressing intent to adopt cash flow management. 

More exporters also aim to maintain competitiveness by providing a wider range of value-added services (44.5%) and increasing marketing and promotional activities (41.2%).