***************************************************
The Census and Statistics Department (C&SD) released today (August 25) the external merchandise trade statistics for July 2015. In July 2015, the values of Hong Kong's total exports and imports of goods both recorded year-on-year decreases, at 1.6% and 5.2% respectively.
In July 2015, the value of total exports of goods (comprising re-exports and domestic exports) decreased by 1.6% over a year earlier to $320.9 billion, after a year-on-year decrease of 3.1% in June 2015. Within this total, the value of re-exports decreased by 1.3% to $316.7 billion in July 2015, while the value of domestic exports decreased by 19.0% to $4.1 billion. Concurrently, the value of imports of goods decreased by 5.2% over a year earlier to $349.3 billion in July 2015, after a year-on-year decrease of 2.0% in June 2015. A visible trade deficit of $28.4 billion, equivalent to 8.1% of the value of imports of goods, was recorded in July 2015.
For the first seven months of 2015 as a whole, the value of total exports of goods dropped by 0.2% over the same period in 2014. Within this total, the value of re-exports remained virtually unchanged while the value of domestic exports decreased by 14.0%. Concurrently, the value of imports of goods decreased by 1.6%. A visible trade deficit of $270.7 billion, equivalent to 11.7% of the value of imports of goods, was recorded in the first seven months of 2015.
Comparing the three-month period ending July 2015 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods increased by 0.9%. Within this total, the value of re-exports increased by 1.0%, whereas the value of domestic exports went down by 3.0%. Meanwhile, the value of imports of goods decreased by 0.6%.
Analysis by country/territory
Comparing July 2015 with July 2014, total exports to Asia as a whole went down by 2.1%. In this region, decreases were registered in the values of total exports to some major destinations, in particular Taiwan (-25.9%), Korea (-24.8%), Malaysia (-10.0%), Singapore (-9.8%), Thailand (-8.2%), Japan (-4.4%) and the mainland of China (the Mainland) (-2.5%). On the other hand, increases were recorded in the values of total exports to India (+33.5%) and Vietnam (+26.2%).
Apart from destinations in Asia, decreases were also registered in the values of total exports to some major destinations in other regions, in particular Germany (-3.5%). Concurrently, increases were registered in the values of total exports to the United Kingdom (+9.1%) and the USA (+0.4%).
Over the same period of comparison, decreases were registered in the values of imports from most major suppliers, in particular Switzerland (-23.7%), Japan (-14.2%), Taiwan (-11.7%), Malaysia (-7.8%), India (-5.2%) and Singapore (-4.5%). The value of imports from the Mainland also decreased by 1.5%. Concurrently, an increase was registered in the value of imports from the USA (+3.0%).
For the first seven months of 2015 as a whole, year-on-year decreases were registered in the values of total exports to some major destinations, in particular Taiwan (-18.0%), Korea (-12.0%), Japan (-7.0%), Germany (-3.9%) and the Mainland (-1.4%). However, year-on-year increases were registered in the values of total exports to Vietnam (+21.0%), India (+9.8%), the United Kingdom (+6.7%) and the USA (+4.4%).
Over the same period of comparison, year-on-year decreases were registered in the values of imports from some major suppliers, in particular Switzerland (-18.6%), Japan (-8.6%), Malaysia (-8.4%), Taiwan (-7.3%) and India (-6.4%). On the other hand, year-on-year increases were registered in the values of imports from the USA (+4.3%), Korea (+2.6%) and the Mainland (+1.6%).
Analysis by major commodity
Comparing July 2015 with July 2014, decreases were registered in the values of total exports of some principal commodity divisions, in particular "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $2.1 billion or -10.9%) and "articles of apparel and clothing accessories" (by $1.3 billion or -7.8%). However, increases were registered in the values of total exports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $4.1 billion or 4.2%) and "non-metallic mineral manufactures" (by $1.0 billion or 6.9%).
Over the same period of comparison, decreases were registered in the values of imports of most principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $4.7 billion or -4.2%), "non-metallic mineral manufactures" (by $3.2 billion or -18.7%) and "petroleum, petroleum products and related materials" (by $3.0 billion or -33.8%). However, an increase was registered in the value of imports of "telecommunications and sound recording and reproducing apparatus and equipment" (by $3.9 billion or 6.9%).
For the first seven months of 2015 as a whole, year-on-year decreases were registered in the values of total exports of some principal commodity divisions, in particular "articles of apparel and clothing accessories" (by $8.5 billion or -9.6%) and "professional, scientific and controlling instruments and apparatus" (by $4.9 billion or -10.1%). However, year-on-year increases were registered in the values of total exports of "telecommunications and sound recording and reproducing apparatus and equipment" (by $21.8 billion or 5.7%) and "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $21.3 billion or 3.5%).
Over the same period of comparison, year-on-year decreases were registered in the values of imports of most principal commodity divisions, in particular "petroleum, petroleum products and related materials" (by $14.7 billion or -24.2%), "office machines and automatic data processing machines" (by $12.0 billion or -5.7%) and "non-metallic mineral manufactures" (by $9.9 billion or -8.2%). However, a year-on-year increase was registered in the value of imports of "telecommunications and sound recording and reproducing apparatus and equipment" (by $48.7 billion or 13.5%).
Commentary
A Government spokesman noted that merchandise exports remained weak in July, as the slack in global demand continued to pose a drag on regional production and trading activity. Most advanced and Asian markets showed lacklustre performance.
The spokesman commented further that looking ahead, the external trading environment will remain challenging, given the slow global economic growth and the headwinds from the impending US interest rate lift-off. This will likely continue to constrain Hong Kong's near-term export performance. The Government will monitor the situation closely.
Further information
Table 1 at the annex presents the analysis of external merchandise trade statistics for July 2015. Table 2 presents the original monthly trade statistics from January 2012 to July 2015, and Table 3 gives the seasonally adjusted series for the same period.
The values of total exports of goods to 10 main destinations for July 2015 are shown in Table 4, whereas the values of imports of goods from 10 main suppliers are given in Table 5.
Table 6 and 7 show the values of total exports and imports of 10 principal commodity divisions for July 2015.
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 July 2015 will be released in mid-September 2015.
The July 2015 issue of "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong's external merchandise trade in July 2015. Detailed merchandise trade statistics analysed by commodity and by country/territory are published in the July 2015 issue of "Hong Kong Merchandise Trade Statistics". The two publications will be available in mid-September 2015. 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 Trade Analysis Section (2) of the C&SD (Tel: 2582 5042).
Ends/Tuesday, August 25, 2015
Issued at HKT 16:36
NNNN