Hong Kong’s economy is suffering damage from a decline in exports. Official statistics showed a decrease in exports by 9.1% in July compared to last year.
Bloomberg experts’ forecasts were for a decline of 8.8%. The decline has been going on for more than a year. Imports also decreased by 7.9% (the expectation was minus 5.9%). The trade deficit amounted to 3.8 billion US dollars.
The breakdown by sub-region shows that exports to Asia for the month decreased by 11.6% compared to July 2022. In mainland China ― a decrease of 15.2%, in other major Asian economies ― also a double-digit drop, a decrease is recorded in exports to the United States and Europe. Moreover, in the covid 2020, the decrease was less. The government says about the difficult external environment ― the continuing high inflation and the slowdown in China’s economic growth. In addition, the post-bubble boom is fading in the domestic market. GDP increased by 1.5% in six months, which is below forecasts. The news of recent days is the expectation of rising food prices due to the ban on seafood imports from Japan. Hong Kong authorities are afraid of dumping water from the Fukushima nuclear power plant.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.