Hong Kong's trade landscape has shown a promising uptick in July, as evidenced by the latest data released by the Census and Statistics Department (C&SD). The total volume of goods exported from Hong Kong experienced a notable increase of 8.7% year-on-year, while the import volume also witnessed growth, rising by 6.5% in the same time frame.
When examining the performance over the first seven months of 2024, the total exports of goods from Hong Kong have grown by 7.8% compared to the corresponding period in 2023. In contrast, imports have shown a weaker yet positive increase of 4.1% within this same timeframe, highlighting a resilient economic environment despite global uncertainties.
Additionally, on a seasonally adjusted basis, a comparison between the three-month period ending July and the preceding three months indicates a slight improvement in export volumes by 0.6%, while imports reflect a more significant rise of 2.0%. This incremental growth showcases the recovering momentum in Hong Kong's trade sector. A closer look at the export dynamics in July reveals significant variances across trading partners.
The volume of goods exported from Hong Kong to China soared by 20.4% year-on-year, with exports specifically to mainland China marking a commendable increase of 16.7%. Similarly, exports to the United States also registered a healthy rise of 12.2%. Conversely, not all trading partnerships experienced growth.
Exports to Taiwan faced a downturn, decreasing by 8% year-on-year in July, while those to India endured a substantial drop of 27.6%, indicating that certain markets are proving to be more challenging for Hong Kong's exporters. On the import front, July saw a significant influx of goods from South Korea, which rose sharply by 27.3% on a year-over-year basis.
Additionally, imports from Taiwan and mainland China exhibited increases of 17.3% and 8.6%, respectively. However, the data also shows declining trends in imports from Singapore and Japan, which fell by 2.8% and 5.7%, respectively, demonstrating the complexities of regional trade relationships. Moreover, an analysis of inflationary pressures reveals that there has been moderate inflation affecting both exports and imports throughout the year leading up to July.
Specifically, the prices of exported goods increased by 3.9% year-on-year in July, while import prices experienced a rise of 2.8%. This inflationary trend may impact future trade negotiations and pricing strategies for businesses operating in this dynamic environment. With the market recovering, Hong Kong’s trade sectors are poised for potential growth, but businesses need to remain vigilant to the changing landscape and adapt to emerging trends.
Strategic planning and market diversification will be crucial for maintaining momentum in light of recent shifts in trade patterns and global economic dynamics..