Exports grow 'strongly' by over 30% to $406.6b in June

The recent surge, however, may dampen recovery in some markets.

The values of Hong Kong’s total exports grew by 33% year-on-year to $406.6b in June, driven by China, the US, and the EU markets.

The value of total imports also rose by 31.9% to $447.1b, resulting in a visible deficit of $40.5b, which is 9% of the imports of goods.

“The value of merchandise exports continued to grow strongly in June over a year earlier. Exports to the Mainland, the US, and the EU all accelerated in growth, while those to other Asian markets also expanded by varying degrees,” a government spokesman said.

“For the first half of 2021 combined, total merchandise trade value amounted to $4.748t, surpassing the high in the same period in 2018 by 13.0%.”

In the first half of the year, the value of total exports and imports respectively rose by 30% and 26.8%, compared to the same period a year ago.

The June trade also showed a higher growth compared to 24% in exports and 26.5% in imports recorded in May.

Total exports to Asia grew by 35.6% with increases registered in the values of total exports to most major destinations, such as Korea (+64.1%), Taiwan (+46.1%), Mainland China (+36.6%), the Philippines (+31.9%), and Malaysia (+31.2%).

Increases were also registered in the values of total exports to some major destinations in other regions, in particular the US (+19.2%).

The values of imports from most major suppliers also increased, particularly in India (+68.3%), Korea (+59.3%), Singapore (+55.1%), the US (+42.7%), Taiwan (+41.8%), and Mainland (+32%).

“Looking ahead, the improved external environment should continue to support Hong Kong's export performance in the near term,” the spokesman said.

“Yet, the recent surge of COVID-19 mutant infections may hinder the pace of economic recovery in some major markets.  Developments of China-US relations and geopolitical tensions also warrant attention.”

Likewise, the OCBC Treasury Research expects that growth in Hong Kong’s exports and imports may “slow down moderately,” seeing the demand for Chinese end products peaked as production in other economies resume.

This may be offset by the stronger demand for Chinese capital goods and intermediate goods.

“In conclusion, exports and imports may grow about 20% this year,” the OCBC said in a report.