Hong Kong Trade Gap Narrows To HK$26.4 Bln

(RTTNews) - Hong Kong's trade deficit decreased in May from a year ago, as imports fell faster than exports, data from the Census and Statistics Department showed on Tuesday.

The visible trade deficit fell notably to HK$26.4 billion from HK$36.7 billion in the same month last year. This was also well below April's shortfall of HK$36.6 billion.

The visible trade gap of HK$26.4 billion was equivalent to 7.5 percent of the value of imports.

The annual decline in exports was 15.6 percent in May, following a 13.0 percent fall in April. The overall decline in shipments was attributed to a weak external environment.

Total exports to Asia as a whole dropped by 18.2 percent. Within this, shipments to Malaysia plunged the most, by 38.4 percent, followed by India with a 30.7 percent decline.

Considering other major export destinations, shipments to Germany and the US fell by 32.9 percent and 17.7 percent, respectively.

Imports declined at a faster pace of 16.7 percent versus an 11.9 percent decrease in the prior month.

"Looking ahead, the weakness in the advanced economies will continue to pose challenges to Hong Kong's exports, though the faster growth of the Mainland economy should provide some offset," a government spokesperson said.