Hong Kong's trade figures hit with double whammy

As exports and imports fell 16.9% and 18.3% respectively.

According to a report, the Census & Statistics Department announced that Hong Kong's total goods exports' value fell 16.9% year-on-year in February, while goods imports' value fell 18.3%.

As the trade flows in January and February of each year tend to show considerable volatility due to the difference in timing of the Lunar New Year holiday, it is useful to analyse the trade figures for these two months taken together, the department said.

Taking the two months as a whole, total goods exports' value rose 0.3% year-on-year. Within this total, re-exports' value increased 0.4%, while domestic exports' value fell 3.4%.

Goods imports' value grew 1.4% in the same period. A visible trade deficit of $61.2 billion, representing 10.5% of goods imports' value, was recorded in the first two months.

In February, the total goods exports' value dropped 16.9% year-on-year to $215.7 billion. Within this total, re-exports' value fell 16.8% to $212.5 billion, while domestic exports' value decreased 24.6%, to $3.3 billion.

Goods imports' value fell 18.3% year-on-year to $249.7 billion during the month. A visible trade deficit of $34 billion, equal to 13.6% of goods imports' value, was recorded.

Merchandise exports fell back in February on a year-on-year comparison, the department said, largely due to the difference in timing of the Lunar New Year in 2012 and 2013. Taking the first two months together to remove such distortion, merchandise exports attained only a meagre year-on-year growth, with mixed performance seen across the major markets.

Looking ahead, the external trading environment remains unsteady amid the fluid eurozone sovereign debt situation and the advanced economies' fragile fundamentals.

Although the firmer Mainland economy should render a key stabilising force to intra-regional trade flows, Hong Kong's export performance will likely see some fluctuations in the months ahead.