Hong Kong's August Merchandize Exports Rise Slower Than Expected

Sep 27, 2007 - Hong Kong's exports in August rose 7.5 per cent year-on-year boosted by vibrant trade flows from mainland China and rapid economic expansion in emerging markets, the government said on Thursday.

Exports rose to HK$243.2 billion (US$31.2 billion) after rising 8.6 in July, with re-exports, or imported goods reprocessed and exported from Hong Kong, grew 9.5 per cent year-on-year to HK$233.5 billion.

Imports expanded 9.0 per cent to HK$256.8 billion, although domestic exports dropped 25.3 per cent to HK$9.7 billion.

A government spokesman said while the external trading environment remains largely supportive, it is being subjected to increasing uncertainty.

'The direction of the US economy, in the face of its housing market correction and sub-prime mortgage turbulence, will be the key source of uncertainty in the period ahead,' he said.

'Also relevant to Hong Kong's export performance would be the effects of the mainland's cut in export tax rebate and tightening measures on processing trade, as well as exchange rate movements,' he added.

During the month, exports rose 11 per cent year-on-year to mainland China, the biggest market, and by 5.9 per cent to the Netherlands.

However, exports to some of Hong Kong's major destinations fell, with those to the UK falling 8.8 per cent, Japan down 7 per cent and Taiwan dropping 4.9 per cent.

For the first eight months of the year, exports to mainland China rose 14 per cent, the Netherlands were up by 8.8 per cent, France gained 8 per cent and Germany climbed 6.3 per cent.