Hong Kong’s early 2024 trade figures show 16.6% export surge and 9.7% import growth amidst 5.4% trade deficit

26th March 2024 – (Hong Kong) The Census and Statistics Department (C&SD) has recently published data revealing a modest decline in Hong Kong’s external merchandise trade for February 2024, with both exports and imports of goods experiencing a decrease from the prior year’s figures.

 With exports and imports falling by 0.8% and 1.8% respectively, the figures suggest a nuanced picture of the Special Administrative Region’s trade health, factoring in the seasonal distortions typically caused by the Lunar New Year festivities.

For a more balanced perspective, examining the combined data for January and February 2024, the export value of goods surged by 16.6% from the same period in 2023, while imports saw a 9.7% increase. This period concluded with a visible trade deficit of $38.1 billion, which equates to 5.4% of the value of import goods.

A closer look at February’s standalone figures shows exports falling to $284.1 billion, a 0.8% dip year-on-year after a robust 33.6% climb in January. Imports likewise descended to $325.7 billion, marking a 1.8% year-on-year decrease after January’s 21.7% rise. The month’s trade deficit stood at a significant $41.7 billion, representing 12.8% of import value.

When the period ending in February 2024 is compared to the preceding three months on a seasonally adjusted basis, exports of goods rose by 5.5%, while imports increased by 3.3%.

Region-specific analysis revealed that exports to Asia as a whole in February 2024 dipped by 1.3% compared to the previous year, with notable declines to Taiwan, Korea, Vietnam, and mainland China. Despite this, Thailand, India, and the Philippines experienced substantial export increases. The pattern of fluctuating trade extended beyond Asia, with exports to the USA expanding, while those to Australia and the Netherlands receded.

Import patterns also varied, with Malaysia, mainland China, and Taiwan witnessing a downturn in goods supplied to Hong Kong. Contrastingly, imports from Korea, Singapore, and Vietnam rose significantly.

Considering the aggregated data for the first two months of 2024, exports to key destinations such as Thailand, India, the mainland China, the United Arab Emirates, and the USA saw notable year-on-year increases, whereas exports to the Netherlands experienced a decline. Import trends from major suppliers largely mirrored this growth, with Korea and Vietnam showing strong increases.

Commodity-specific analysis for February 2024 has identified a decrease in exports of key commodities such as electrical machinery and non-ferrous metals. However, telecommunications equipment exports experienced an upswing. Similar variances were observed in import values, with significant decreases in telecommunications and power-generating machinery, while electrical machinery imports amplified.

The first two months of 2024 collectively showcased year-on-year growth across most principal commodity divisions, particularly in electrical machinery and telecommunications equipment, for both exports and imports.

A government spokesperson reflected that the double-digit growth in merchandise exports for the initial two months of 2024 is indicative of a recovery from a low base a year prior. While exports to mainland China and the USA have notably increased, those to the European Union have declined, and other major Asian markets have presented a mixed picture.