Negative balance of trade in August

Hong Kong's exports fell in August while imports fell after five successive months of growth, said the Census and Statistics Department.

Exports dropped 1.3% on-year to HK$307.5 billion after an increase of 10.6% in July. Import value dipped 0.2% on-year to HK$347.1 billion in August. This followed an annual 8.3% growth in July.

A visible trade deficit of HK$39.6 billion was recorded for the month. The shortfall was slightly higher than HK$37 billion recorded in July and HK$36 billion in August 2012.

Exports to the U.S. and Japan fell in August compared to a year earlier while those to Europe improved. Shipments to Asian markets showed a mixed performance.

CSD said the external environment will remain challenging given the tepid recovery of the advanced economies, the slow growth in emerging markets and the uncertainty arising from the U.S. monetary policy and fiscal issues.