Hong Kong Trade Deficit Widens In August

Hong Kong’s foreign trade deficit increased in August from a year ago, as imports grew faster than exports, the Census and Statistics Department reported Tuesday.

The visible trade deficit widened to HK$35.5 billion in August from HK$32.1 billion in the corresponding month last year. The deficit also rose from HK$29.6 billion in July.

Economists had expected the shortfall to drop to HK$28.0 billion.

Exports rose 7.4 percent year-over-year in August, faster than the 7.1 percent growth economists had forecast.

Imports climbed 7.7 percent in August from last year, exceeding the expected increase of 6.1 percent.

“Looking ahead, the improving global economy will likely bring further support to Asia’s as well as Hong Kong’s exports in the near term,” a government spokesman said.

“However, uncertainties in the trading environment are still salient, as the global monetary environment could be complicated by US monetary policy normalisation and possible policy actions by other major central banks in the period ahead.”

“Moreover, the possible rise in protectionist sentiment, Brexit-related negotiations and elevated geopolitical tensions in various regions are also sources of concern.”
Source: RTT News