FX.co ★ Hong Kong Trade Gap Narrows To HK$56.6 Bln

Hong Kong's trade deficit decreased in June from a year ago, as imports fell faster than exports, data from the Census and Statistics Department showed on Tuesday.

The visible trade deficit fell notably to HK$56.6 billion from HK$68.5 billion in the same month last year.

However, this was well above May's shortfall of HK$26.4 billion. The expected deficit was HK$42.4 billion.

The visible trade gap of HK$56.6 billion was equivalent to 14.4 percent of the value of imports.

The annual decline in exports was 11.4 percent in June, following a 15.6 percent fall in May. The overall decline in shipments was attributed to a weak external environment.

Total exports to Asia as a whole dropped by 12.0 percent. Within this, shipments to Malaysia plunged the most, by 31.9 percent,?followed by Singapore with a 26.2 percent decline.

When compared to other main export destinations, shipments to Germany and the United States decreased by 29.0 percent and 22.1 percent, respectively.

Imports declined at a slower pace of 12.3 percent versus a 16.7 percent decrease in the prior month.

"Looking ahead, with slower global economic growth, Hong Kong's export performance will continue to face intense pressure in the near term," a government spokesperson said.