The Census and Statistics Department (C&SD) released today (August 25) the external merchandise trade statistics for July 2016. In July 2016, the values of Hong Kong’s total exports and imports of goods both recorded year-on-year decreases, at 5.1% and 3.3% respectively.

     In July 2016, the value of total exports of goods (comprising re-exports and domestic exports) decreased by 5.1% over a year earlier to $304.5 billion, after a year-on-year decrease of 1.0% in June 2016. Within this total, the value of re-exports decreased by 5.1% to $300.6 billion in July 2016, while the value of domestic exports decreased by 5.8% to $3.9 billion. Concurrently, the value of imports of goods decreased by 3.3% over a year earlier to $337.8 billion in July 2016, after a year-on-year decrease of 0.9% in June 2016. A visible trade deficit of $33.3 billion, equivalent to 9.9% of the value of imports of goods, was recorded in July 2016.

     For the first seven months of 2016 as a whole, the value of total exports of goods dropped by 4.1% over the same period in 2015. Within this total, the value of re-exports decreased by 3.9%, while the value of domestic exports decreased by 14.5%. Concurrently, the value of imports of goods decreased by 5.2%. A visible trade deficit of $232.9 billion, equivalent to 10.6% of the value of imports of goods, was recorded in the first seven months of 2016.

     Comparing the three-month period ending July 2016 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods rose by 5.3%. Within this total, the value of re-exports increased by 5.3%, while the value of domestic exports went up by 0.2%. Meanwhile, the value of imports of goods increased by 5.6%.

Analysis by country/territory

     Comparing July 2016 with July 2015, total exports to Asia as a whole went down by 5.4%. In this region, decreases were registered in the values of total exports to some major destinations, in particular Vietnam (-10.7%), India (-9.3%), the Philippines (-8.5%), the mainland of China (the Mainland) (-6.4%) and Malaysia (-1.8%). On the other hand, increases were recorded in the values of total exports to Taiwan (+18.1%), Singapore (+8.7%) and Korea (+4.5%).

     Apart from destinations in Asia, decreases were registered in the values of total exports to some major destinations in other regions, in particular the United Kingdom (-19.4%), Germany (-5.8%) and the USA (-1.7%).

     Over the same period of comparison, decreases were registered in the values of imports from some major suppliers, in particular Switzerland (-19.3%), Malaysia (-16.1%), the Mainland (-6.2%), Japan (-5.4%), the USA (-4.5%) and Korea (-0.7%). Concurrently, increases were registered in the values of imports from Taiwan (+10.5%) and Singapore (+10.0%).

     For the first seven months of 2016 as a whole, year-on-year decreases were registered in the values of total exports to some major destinations, in particular Vietnam (-7.6%), the USA (-5.7%), Korea (-5.6%), Japan (-5.1%), the Mainland (-4.9%) and Germany (-1.0%).

     Over the same period of comparison, year-on-year decreases were registered in the values of imports from most major suppliers, in particular Switzerland (-12.8%), Japan (-9.5%), the USA (-9.4%), Malaysia (-6.6%) and the Mainland (-5.7%).

Analysis by major commodity

     Comparing July 2016 with July 2015, decreases were registered in the values of total exports of most principal commodity divisions, in particular "office machines and automatic data processing machines" (by $5.4 billion or -14.7%), "articles of apparel and clothing accessories" (by $2.4 billion or -15.3%) and "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $1.2 billion or -7.2%). However, an increase was registered in the value of total exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $2.3 billion or 2.2%).

     Over the same period of comparison, decreases were registered in the values of imports of most principal commodity divisions, in particular "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $4.0 billion or -17.8%), "office machines and automatic data processing machines" (by $3.6 billion or -11.8%) and "articles of apparel and clothing accessories" (by $2.1 billion or -17.0%). However, an increase was registered in the value of imports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $10.9 billion or 10.0%).

     For the first seven months of 2016 as a whole, year-on-year decreases were registered in the values of total exports of some principal commodity divisions, in particular "office machines and automatic data processing machines" (by $31.6 billion or -13.8%), "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $12.9 billion or -10.9%) and "telecommunications and sound recording and reproducing apparatus and equipment" (by $12.3 billion or -3.0%). However, a year-on-year increase was registered in the value of total exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $19.2 billion or 3.0%).

     Over the same period of comparison, year-on-year decreases were registered in the values of imports of most principal commodity divisions, in particular "telecommunications and sound recording and reproducing apparatus and equipment" (by $26.3 billion or -6.4%), "office machines and automatic data processing machines" (by $22.5 billion or -11.4%) and "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $7.9 billion or -5.8%). However, a year-on-year increase was registered in the value of imports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $31.7 billion or 4.5%).

Commentary

     A Government spokesman noted that the decline in the value of merchandise exports, on a year-on-year basis, widened somewhat in July, after having narrowed in the preceding months, reflecting unsteady global demand conditions. Nevertheless, on a seasonally adjusted basis, the value of merchandise exports in May to July saw some increase over the preceding three months.

     The spokesman commented further that looking ahead, the external trading environment is still challenging, as global economic growth will likely remain modest in the near term and fraught with uncertainties, including those arising from Brexit, US interest rate normalisation, monetary policy divergence among major central banks and heightened geopolitical tensions in various regions. The Government will monitor the situation closely.

Further information

     Table 1 at the annex presents the analysis of external merchandise trade statistics for July 2016. Table 2 presents the original monthly trade statistics from January 2013 to July 2016, and Table 3 gives the seasonally adjusted series for the same period.

     The values of total exports of goods to 10 main destinations for July 2016 are shown in Table 4, whereas the values of imports of goods from 10 main suppliers are given in Table 5.

     Tables 6 and 7 show the values of total exports and imports of 10 principal commodity divisions for July 2016.

     All the merchandise trade statistics described here are measured at current prices and no account has been taken of changes in prices between the periods of comparison. A separate analysis of the volume and price movements of external merchandise trade for July 2016 will be released in mid-September 2016.

     The July 2016 issue of "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong’s external merchandise trade in July 2016. Detailed merchandise trade statistics analysed by commodity and by country/territory are published in the July 2016 issue of "Hong Kong Merchandise Trade Statistics". The two publications will be available in mid-September 2016. Users can download them free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp230.jsp).

     Enquiries on merchandise trade statistics may be directed to Trade Analysis Section (2) of the C&SD (Tel: 2582 5042).

Ends/Thursday, August 25, 2016
Issued at HKT 16:30

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