External merchandise trade statistics for March 2016
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     The Census and Statistics Department (C&SD) released today (April 26) the external merchandise trade statistics for March 2016. In March 2016, the values of Hong Kong's total exports and imports of goods both recorded year-on-year decreases, at 7.0% and 5.8% respectively.

     In March 2016, the value of total exports of goods (comprising re-exports and domestic exports) decreased by 7.0% over a year earlier to $275.4 billion, after a year-on-year decrease of 10.4% in February 2016. Within this total, the value of re-exports decreased by 7.0% to $271.8 billion in March 2016, while the value of domestic exports decreased by 10.7% to $3.6 billion. Concurrently, the value of imports of goods decreased by 5.8% over a year earlier to $322.4 billion in March 2016, after a year-on-year decrease of 10.1% in February 2016. A visible trade deficit of $47.0 billion, equivalent to 14.6% of the value of imports of goods, was recorded in March 2016.

     For the first quarter of 2016 as a whole, the value of total exports of goods dropped by 6.8% over the same period in 2015. Within this total, the value of re-exports decreased by 6.7%, while the value of domestic exports decreased by 15.2%. Concurrently, the value of imports of goods decreased by 8.2%. A visible trade deficit of $97.5 billion, equivalent to 11.1% of the value of imports of goods, was recorded in the first quarter of 2016.

     Comparing the first quarter of 2016 with the preceding quarter on a seasonally adjusted basis, the value of total exports of goods decreased by 6.7%. Within this total, the value of re-exports decreased by 6.7%, while the value of domestic exports went down by 3.9%. Meanwhile, the value of imports of goods decreased by 5.0%.

Analysis by country/territory

     Comparing March 2016 with March 2015, total exports to Asia as a whole went down by 9.3%. In this region, decreases were registered in the values of total exports to most major destinations, in particular Korea (-15.2%), Malaysia (-11.4%), the mainland of China (the Mainland) (-11.0%), the Philippines (-5.3%), Taiwan (-4.9%) and Japan (-3.5%). On the other hand, increases were recorded in the values of total exports to India (+3.9%) and Singapore (+0.7%).

     Apart from destinations in Asia, decreases were also registered in the values of total exports to some major destinations in other regions, such as the USA (-0.1%). Concurrently, increases were registered in the values of total exports to the United Kingdom (+11.6%) and Germany (+1.4%).

     Over the same period of comparison, decreases were registered in the values of imports from most major suppliers, in particular Switzerland (-21.8%), the USA (-14.3%), Japan (-9.4%), Korea (-7.3%), Singapore (-7.2%), Taiwan (-6.3%) and the Mainland (-2.5%). Concurrently, increases were registered in the values of imports from Malaysia (+6.6%) and Thailand (+2.3%).

     For the first quarter of 2016 as a whole, year-on-year decreases were registered in the values of total exports to most major destinations, in particular Taiwan (-9.7%), the Mainland (-8.7%), the USA (-7.7%), Thailand (-5.7%), Japan (-5.3%) and Germany (-4.9%).

     Over the same period of comparison, year-on-year decreases were registered in the values of imports from all major suppliers, in particular Switzerland (-17.2%), Japan (-15.1%), Singapore (-10.2%), the Mainland (-8.4%), the USA (-7.0%) and Korea (-5.5%).

Analysis by major commodity

     Comparing March 2016 with March 2015, decreases were registered in the values of total exports of some principal commodity divisions, in particular "office machines and automatic data processing machines" (by $5.4 billion or -16.3%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $3.9 billion or -6.9%) and "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $2.9 billion or -3.1%).

     Over the same period of comparison, decreases were registered in the values of imports of some principal commodity divisions, in particular "telecommunications and sound recording and reproducing apparatus and equipment" (by $4.8 billion or -8.1%), "office machines and automatic data processing machines" (by $2.6 billion or -8.7%) and "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $1.8 billion or -8.3%). However, an increase was registered in the value of imports of "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $4.1 billion or 3.9%).

     For the first quarter of 2016 as a whole, year-on-year decreases were registered in the values of total exports of most principal commodity divisions, in particular "office machines and automatic data processing machines" (by $16.6 billion or -17.3%), "telecommunications and sound recording and reproducing apparatus and equipment" (by $8.1 billion or -4.9%) and "miscellaneous manufactured articles (mainly jewellery, goldsmiths' and silversmiths' wares)" (by $5.8 billion or -11.9%). However, a year-on-year increase was registered in the value of total exports of "non-metallic mineral manufactures" (by $2.4 billion or 5.6%).

     Over the same period of comparison, year-on-year decreases were registered in the values of imports of most principal commodity divisions, in particular "telecommunications and sound recording and reproducing apparatus and equipment" (by $21.7 billion or -12.7%), "office machines and automatic data processing machines" (by $10.4 billion or -12.7%) and "photographic apparatus, equipment and supplies, optical goods, watches and clocks" (by $3.8 billion or -14.7%).

Commentary

     A Government spokesman noted that merchandise exports remained sluggish in March, reflecting the slack in global demand and its dampening effect on the regional trade flows. Most of the major markets still showed subpar performance.

     The spokesman commented further that looking ahead, Hong Kong's export performance is likely to remain constrained by the slow-growing global economy in the near term. Moreover, uncertainties arising from the monetary policy normalisation in the US, diverging monetary policies among major central banks and heightened geopolitical tensions in different parts of the world could add further headwinds. The Government will monitor the situation closely.

Further information

     Table 1 at the annex presents the analysis of external merchandise trade statistics for March 2016. Table 2 presents the original monthly trade statistics from January 2013 to March 2016, and Table 3 gives the seasonally adjusted series for the same period.

     The values of total exports of goods to 10 main destinations for March 2016 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 March 2016.

     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 March 2016 will be released in mid-May 2016.

     The March 2016 issue of "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong's external merchandise trade in March 2016. Detailed merchandise trade statistics analysed by commodity and by country/territory are published in the March 2016 issue of "Hong Kong Merchandise Trade Statistics". The two publications will be available in mid-May 2016. 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/Tuesday, April 26, 2016
Issued at HKT 16:30

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