Hong Kong Trade Gap Narrows In August

(RTTNews) - Hong Kong's foreign trade deficit decreased significantly in August from a year ago as exports grew faster than imports, data from the Census and Statistics Department showed on Thursday.

The trade deficit dropped to HK$25.4 billion in August from HK$33.1 billion in the same month last year. The trade shortfall also declined from HK$34.1 billion in July.

The visible trade deficit of HK$25.4 billion was equivalent to 5.5 percent of the value of imports.

The annual increase in exports was 14.5 percent in August, versus a 14.3 percent surge in July.

Exports to the mainland of China alone expanded by 8.2 percent from last year.

Total exports to Asia as a whole grew by 12.6 percent. Within this, shipments to Malaysia advanced the most, by 73.6 percent. This rise was followed by Vietnam, with a 54.3 percent jump in exports.

Apart from destinations in Asia, outflows to the Netherlands rose 65.7 percent, and those to the United Kingdom were 55.8 percent higher.

Imports logged an annual increase of 11.5 percent in August, slower than the 16.5 percent growth in the prior month. Imports from Vietnam topped the list with an 80.8 percent jump.

"Looking ahead, sustained economic growth in Asia, in particular the Mainland, together with Hong Kong's enhanced economic and trade ties with different markets, should continue to provide support to Hong Kong's merchandise trade performance," a government spokesman said.

"Yet, the United States' trade policy will continue to affect the near-term outlook of international trade flows."