External merchandise trade statistics for February 2017
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     The Census and Statistics Department (C&SD) released today (March 27) the external merchandise trade statistics for February 2017. In February 2017, the values of Hong Kong's total exports and imports of goods both recorded year-on-year increases, at 18.2% and 25.4% respectively.

     As the trade flows in January and February of each year tend to show considerable volatilities due to difference in timing of the Lunar New Year holidays, it is useful to analyse the trade figures for these two months taken together.

     Taking January and February as a whole to neutralise the distortion caused by the difference in timing of the Lunar New Year holidays, the value of total exports of goods (comprising re-exports and domestic exports) increased by 6.7% over the same period in 2016. Within this total, the value of re-exports increased by 6.8%, whereas the value of domestic exports decreased by 2.1%. Concurrently, the value of imports of goods increased by 9.3%. A visible trade deficit of $68.6 billion, equivalent to 11.3% of the value of imports of goods, was recorded in the first two months of 2017.

     In February 2017, the value of total exports of goods increased by 18.2% over a year earlier to $241.7 billion, after a year-on-year decrease of 1.2% in January 2017. Within this total, the value of re-exports increased by 18.4% to $238.9 billion in February 2017, while the value of domestic exports increased by 3.8% to $2.8 billion. Concurrently, the value of imports of goods increased by 25.4% over a year earlier to $298.0 billion in February 2017, after a year-on-year decrease of 2.7% in January 2017. A visible trade deficit of $56.3 billion, equivalent to 18.9% of the value of imports of goods, was recorded in February 2017.

     Comparing the three-month period ending February 2017 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods increased by 4.0%. Within this total, the value of re-exports increased by 4.1%, whereas the value of domestic exports went down by 3.2%. Meanwhile, the value of imports of goods increased by 5.3%.

Analysis by country/territory

     Comparing February 2017 with February 2016, total exports to Asia as a whole grew by 29.9%. In this region, increases were registered in the values of total exports to most major destinations, in particular Taiwan (+82.7%), Vietnam (+46.5%), the mainland of China (the Mainland) (+35.9%), the Philippines (+21.3%), Korea (+18.4%) and India (+9.7%). On the other hand, decreases were recorded in the values of total exports to Malaysia (-7.0%) and Singapore (-4.7%).

     Apart from destinations in Asia, decreases were registered in the values of total exports to some major destinations in other regions, in particular Germany (-19.0%), the United Kingdom (-18.8%) and the USA (-10.9%).

     Over the same period of comparison, increases were registered in the values of imports from most major suppliers, in particular the Philippines (+59.9%), Korea (+59.4%), Taiwan (+38.1%), India (+32.6%), Thailand (+28.7%), Japan (+27.4%) and the Mainland (+24.5%).

     For the first two months of 2017 as a whole, year-on-year increases were registered in the values of total exports to some major destinations, in particular Taiwan (+48.7%), Korea (+20.3%), the Netherlands (+17.4%), India (+16.0%), Vietnam (+10.9%) and the Mainland (+10.6%). However, year-on-year decreases were registered in the values of total exports to Germany (-2.7%) and Singapore (-2.3%).

     Over the same period of comparison, year-on-year increases were registered in the values of imports from most major suppliers, in particular Korea (+42.3%), the Philippines (+38.6%), India (+22.9%), Singapore (+19.0%) and Taiwan (+17.4%). The value of imports from the Mainland also increased by 6.4%.

Analysis by major commodity

     Comparing February 2017 with February 2016, increases were registered in the values of total exports of most principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $23.3 billion or 35.9%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $5.5 billion or 13.2%) and "office machines and automatic data processing machines" (by $3.4 billion or 15.8%). However, a decrease was registered in the value of total exports of "articles of apparel and clothing accessories" (by $2.5 billion or -32.3%).

     Over the same period of comparison, increases were registered in the values of imports of most principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $29.1 billion or 37.4%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $10.5 billion or 28.1%) and "office machines and automatic data processing machines" (by $3.1 billion or 16.0%). However, a decrease was registered in the value of imports of "articles of apparel and clothing accessories" (by $0.8 billion or -14.9%).

     For the first two months of 2017 as a whole, year-on-year increases were registered in the values of total exports of some principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $24.8 billion or 15.4%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $6.0 billion or 5.7%) and "office machines and automatic data processing machines" (by $4.0 billion or 7.8%). However, a year-on-year decrease was registered in the value of total exports of "articles of apparel and clothing accessories" (by $3.0 billion or -14.9%).

     Over the same period of comparison, year-on-year increases were registered in the values of imports of some principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $35.9 billion or 20.1%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $10.3 billion or 10.8%) and "petroleum, petroleum products and related materials" (by $5.2 billion or 71.1%). However, a year-on-year decrease was registered in the value of imports of "articles of apparel and clothing accessories" (by $2.0 billion or -13.0%).

Commentary

     A Government spokesman noted that merchandise exports continued to improve. Taking the first two months of 2017 together to remove the distortion caused by the difference in timing of the Lunar New Year holidays, the value of merchandise exports grew notably further over a year earlier, amid improving external demand. Exports to the Mainland and many other Asian markets rendered the main growth impetus.

     The spokesman commented further that looking ahead, the improvement in global economic conditions, if continued, would provide support to Asia's trade to the benefit of Hong Kong's exports. Yet, the trading environment is still subject to uncertainties, including those associated with the interest rate normalisation and other policy direction in the US, Brexit-related developments, as well as heightened geopolitical tensions in various regions. The Government will continue to monitor the situation closely.

Further information

     Table 1 at the annex presents the analysis of external merchandise trade statistics for February 2017. Table 2 presents the original monthly trade statistics from January 2014 to February 2017, and Table 3 gives the seasonally adjusted series for the same period.
18. The values of total exports of goods to 10 main destinations for February 2017 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 February 2017.

     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 February 2017 will be released in mid-April 2017.

     The February 2017 issue of "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong's external merchandise trade in February 2017. Detailed merchandise trade statistics analysed by commodity and by country/territory are published in the February 2017 issue of "Hong Kong Merchandise Trade Statistics". The two publications will be available in mid-April 2017. 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 the Trade Analysis Section (2) of the C&SD (Tel: 2582 5042).

Ends/Monday, March 27, 2017
Issued at HKT 16:30

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