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Content of the press release

The values of Hong Kong's total exports and imports of goods both continued to register distinct increases in April 2003 over a year earlier, though moderated from the marked growth in March. The Census and Statistics Department released today (May 27) the external merchandise trade figures for April 2003.

2. In April 2003, the value of total exports of goods (comprising re-exports and domestic exports) increased by 9.0% over a year earlier to $134.1 billion, after a year-on-year increase of 15.4% in March. Within this total, the value of re-exports increased by 11.3% to $125.7 billion in April, but the value of domestic exports fell by 16.9% to $8.4 billion. Concurrently, the value of imports of goods rose by 8.4% over a year earlier to $141.3 billion in April 2003, after a year-on-year increase of 14.6% in March.

3. A visible trade deficit of $7.2 billion, equivalent to 5.1% of the value of imports of goods, was recorded in April 2003. This was broadly similar to the corresponding deficit of $7.3 billion, equivalent to 5.6% of the value of imports of goods, recorded in the same month in 2002.

4. For the first four months of 2003 as a whole, the value of total exports of goods rose markedly, by 15.2% over the same period in 2002. Within this total, the value of re-exports surged by 17.8%, while the value of domestic exports shrank by 12.1%. Over the same periods of comparison, the value of imports of goods also increased significantly, by 15.2%. A visible trade deficit of $27.1 billion, equivalent to 5.0% of the value of imports of goods, was recorded in the first four months of 2003. This compared with the corresponding deficit of $23.8 billion, equivalent to 5.0% of the value of imports of goods, recorded in the same period in 2002.

5. Comparing the three-month period ending April 2003 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods rose by 0.9%. Within this total, the value of re-exports went up by 1.5%, but the value of domestic exports fell by 6.6%. Meanwhile, the value of imports of goods also increased by 0.9%.

Commentary

6. A Government Secretariat spokesman noted that merchandise exports slowed down considerably in growth in April 2003. Conceivably, this reflected the earlier cut-back in orders at a time when the tension before the war on Iraq loomed high. Analysed by market, the slow-down was most visible in exports of goods to the United States. Exports of goods to the European Union, whilst still robust with a further double-digit increase, also moderated in growth. Exports to Singapore, Thailand and Malaysia slackened further to declines of various magnitudes. But exports to the other major East Asian markets still held up quite well, with double-digit growth registered for exports to the mainland of China, Taiwan, the Republic of Korea and Indonesia.

Further information

7. Table 1 (text version) at the annex presents the analysis of external merchandise trade figures in April 2003. Table 2 (text version) presents the original monthly trade figures from January 2000 to April 2003, and Table 3 (text version) gives the seasonally adjusted series for the same period.

8. A more detailed analysis of Hong Kong's external merchandise trade for April 2003, by commodity and country/territory, will be released in early June 2003.

End/Tuesday, May 27, 2003

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