**************************************************
In May 2006, the value of Hong Kong's total exports of goods decreased marginally over a year earlier, whereas the value of imports of goods rose moderately. The Census and Statistics Department released today (June 26) the external merchandise trade statistics for May 2006.
In May 2006, the value of total exports of goods (comprising re-exports and domestic exports) decreased by 0.1% over a year earlier to $193.2 billion, after a year-on-year increase of 9.4% in April. Within this total, the value of re-exports decreased by 1.0% to $181.7 billion in May, whereas the value of domestic exports increased by 17.0% to $11.5 billion. Concurrently, the value of imports of goods increased by 2.5% over a year earlier to $207.8 billion in May 2006, after a year-on-year increase of 11.2% in April. A visible trade deficit of $14.6 billion, equivalent to 7.0% of the value of imports of goods, was recorded in May 2006.
For the first five months of 2006 as a whole, the value of total exports of goods rose by 8.9% over the same period in 2005. Within this total, the value of re-exports increased by 7.7%, while the value of domestic exports increased by 31.5%. Concurrently, the value of imports of goods increased by 10.9%. A visible trade deficit of $66.5 billion, equivalent to 6.7% of the value of imports of goods, was recorded in the first five months of 2006.
Comparing the three-month period ending May 2006 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods decreased by 1.1%. Within this total, the value of re-exports decreased by 0.5%, while the value of domestic exports went down by 8.7%. Meanwhile, the value of imports of goods decreased by 1.8%.
Analysis by country/territory
Comparing May 2006 with May 2005, decreases were registered in the values of re-exports to most major destinations, in particular the Netherlands (-26.1%), Singapore (-14.4%), Taiwan (-11.6%), France (-11.4%) and Germany (-5.9%). Concurrently, significant increases were registered in the values of domestic exports to many major destinations, in particular Germany (+142.4%), the United Kingdom (+140.2%), the Netherlands (+102.5%) and Australia (+29.1%). However, a decrease was registered in the value of domestic exports to Taiwan (-43.1%).
Over the same periods of comparison, increases were registered in the values of imports from many major suppliers, in particular Singapore (+14.6%), Thailand (+13.1%), Korea (+10.9%) and Taiwan (+9.7%). However, a decrease was registered in the value of imports from Japan (-9.9%).
For the first five months of 2006 as a whole, year-on-year increases were registered in the values of re-exports to many major destinations, in particular the mainland of China (the Mainland) (+14.0%), Korea (+12.8%) and Japan (+4.5%). However, year-on-year decreases were registered in the values of re-exports to the Netherlands (-15.3%) and the United Kingdom (-5.0%). Concurrently, year-on-year increases were registered in the values of domestic exports to most major destinations, in particular the Netherlands (+197.7%), Germany (+175.4%), the United Kingdom (+115.5%), Australia (+56.0%) and Japan (+45.1%).
Over the same periods of comparison, year-on-year increases were registered in the values of imports from most major suppliers, in particular Singapore (+25.8%), Thailand (+20.2%), Taiwan (+20.1%), Germany (+18.1%) and Korea (+17.2%).
Analysis by major commodity
Comparing May 2006 with May 2005, decreases were registered in the values of re-exports of many principal commodity divisions, in particular "office machines and automatic data processing machines" (by $4.2 billion or 16.9%) and "clothing" (by $1.4 billion or 10.9%). However, an increase was registered in the value of re-exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $2.9 billion or 7.2%). Concurrently, increases were registered in the values of domestic exports of many principal commodity divisions, in particular "clothing" (by $2.0 billion or 72.6%) and "office machines and automatic data processing machines" (by $552 million or 50.9%). However, a decrease was registered in the value of domestic exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $694 million or 36.6%).
Over the same periods of comparison, increases were registered in the values of imports of many principal commodity divisions, in particular "telecommunications and sound recording and reproducing apparatus and equipment" (by $2.5 billion or 10.7%), "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $2.2 billion or 4.7%) and "petroleum, petroleum products and related materials" (by $2.0 billion or 51.0%).
For the first five months of 2006 as a whole, year-on-year increases were registered in the values of re-exports of many principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $36.8 billion or 22.2%) and "telecommunications and sound recording and reproducing apparatus and equipment" (by $24.7 billion or 22.3%). However, a year-on-year decrease was registered in the value of re-exports of "clothing" (by $6.9 billion or 11.4%). Concurrently, year-on-year increases were registered in the values of domestic exports of many principal commodity divisions, in particular "clothing" (by $9.4 billion or 75.7%) and "office machines and automatic data processing machines" (by $3.9 billion or 89.9%). However, a year-on-year decrease was registered in the value of domestic exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $729 million or 10.8%).
Over the same periods of comparison, year-on-year 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 $41.1 billion or 21.1%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $26.5 billion or 26.1%) and "petroleum, petroleum products and related materials" (by $7.6 billion or 41.1%).
Commentary
A Government Secretariat spokesman noted that merchandise exports reverted to a slight decline in May over a year earlier. This was partly due to a high base in the same month last year, as external demand still held up generally well. Taking April and May together, a growth of 4.4% was still recorded.
The spokesman further pointed out that although a number of uncertainties in the external environment have been looming, including the stepping up of macroeconomic tightening in the Mainland, possible slow down of the US and the European economies amidst rising interest rates, high oil prices, and persistent global trade imbalances, it is too early to conclude whether a slow down in export growth is evident. In fact, for the first five months of 2006 as a whole, there was still an 8.9% increase. More data are needed to discern the trend.
Further information
Table 1 at the annex presents the analysis of external merchandise trade figures in May 2006. Table 2 presents the original monthly trade figures from January 2003 to May 2006, and Table 3 gives the seasonally adjusted series for the same period.
The values of re-exports and domestic exports of goods to ten main destinations in May 2006 are shown in Table 4 and 5 respectively, whereas the values of imports of goods from ten main suppliers are given in Table 6.
Table 7, 8 and 9 show the values of re-exports, domestic exports and imports of ten principal commodity divisions for May 2006.
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 May 2006 will be released in late July 2006.
Detailed merchandise trade statistics analysed by commodity and by country/territory are published in merchandise trade statistics reports. The May 2006 issue of the "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong's external merchandise trade in May 2006. This publication is available around July 18, 2006. Users can download this publication free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the Census and Statistics Department (C&SD). Print version of this publication is for sale at HK$71 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address : 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries on merchandise trade statistics may be directed to the Census and Statistics Department (Tel: 2582 5042).
Ends/Monday, June 26, 2006
Issued at HKT 16:15
NNNN
