Unprecedented pressure Hong Kong exports plummet
- Author:Holmes
- Source:Logistics Baba
- Release Date:2019-12-26
According to the Hong Kong Trade Development Council, the first 10 months of this year,Hong Kong exportsIt is down 5.1% year-on-year, and is expected to fall further by 2% by 2020.
Hong Kong ’s trade promotion agency says Hong Kong ’s exports are facing unprecedented pressure. The agency emphasized that the disruption of operations and the uncertainty caused by trade protection and geopolitical frictions were the main reasons for Hong Kong's sluggish exports.
According to the latest HKTDC Export Index (published in mid-November), the confidence of Hong Kong exporters has bottomed out. Exporters in Hong Kong's major industries and markets have become more pessimistic. The index hit an all-time low of 18.8 points, 3.5 points below its previous low of 22.3 points. The survey also shows that 65% of Hong Kong exporters expect total sales to decline next year, and weak global demand (37% of respondents said) has exceeded China-US trade tensions (32%), becoming a major concern in the near future .
Although the first phase of the China-US trade agreement was recently signed, lingering trade tensions and weak global demand have had a significant negative impact on Hong Kong's export performance. This downturn will only continue since export growth turned negative for the first time in November 2018. In the first 10 months of 2019, Hong Kong's exports fell 5.1% year-on-year. However, this decline is not much more severe than that of some other economies in the region. For example, in the first 10 months of 2019, Singapore's exports fell by 6.1%, while Japan and South Korea fell by 5.2% and 10.7%, respectively.
In terms of export destinations, Hong Kong's trade with the United States fell the most (13.2%), while exports to the EU and Mainland China fell by 4.0% and 6.0%, respectively. Exports to markets with strong supply chain ties with China-US trade, especially Japan (4.5%) and Vietnam (3.8%), also declined.
Fortunately, those markets that were not directly involved in the Sino-US trade dispute were less affected. Taking the first 10 months of 2019 as an example,Latin American exportsIt increased by 3.4% and exports to the Middle East increased by 5.7%.
Hong Kong ’s trade promotion agency says Hong Kong ’s exports are facing unprecedented pressure. The agency emphasized that the disruption of operations and the uncertainty caused by trade protection and geopolitical frictions were the main reasons for Hong Kong's sluggish exports.
According to the latest HKTDC Export Index (published in mid-November), the confidence of Hong Kong exporters has bottomed out. Exporters in Hong Kong's major industries and markets have become more pessimistic. The index hit an all-time low of 18.8 points, 3.5 points below its previous low of 22.3 points. The survey also shows that 65% of Hong Kong exporters expect total sales to decline next year, and weak global demand (37% of respondents said) has exceeded China-US trade tensions (32%), becoming a major concern in the near future .
Although the first phase of the China-US trade agreement was recently signed, lingering trade tensions and weak global demand have had a significant negative impact on Hong Kong's export performance. This downturn will only continue since export growth turned negative for the first time in November 2018. In the first 10 months of 2019, Hong Kong's exports fell 5.1% year-on-year. However, this decline is not much more severe than that of some other economies in the region. For example, in the first 10 months of 2019, Singapore's exports fell by 6.1%, while Japan and South Korea fell by 5.2% and 10.7%, respectively.
In terms of export destinations, Hong Kong's trade with the United States fell the most (13.2%), while exports to the EU and Mainland China fell by 4.0% and 6.0%, respectively. Exports to markets with strong supply chain ties with China-US trade, especially Japan (4.5%) and Vietnam (3.8%), also declined.
Fortunately, those markets that were not directly involved in the Sino-US trade dispute were less affected. Taking the first 10 months of 2019 as an example,Latin American exportsIt increased by 3.4% and exports to the Middle East increased by 5.7%.