Hong Kong Exports Fall for 12th Straight Month
Hong Kong Exports Fall for 12th Straight Month
(Bloomberg) --
Hong Kong’s exports declined for a 12th straight month in October with the financial hub mired in recession under the ongoing U.S.-China trade war and pro-democracy protests.
Exports contracted to HK$348.5 billion ($44.5 billion), a 9.2% drop from a year ago, according to a government release. The median forecast was for a 8.4% retreat, according to economists surveyed by Bloomberg. Imports fell by 11.5% from a year ago, narrowing the trade deficit to HK$30.6 billion.
“Hong Kong’s merchandise export performance will likely stay weak in the near term, as soft global economic growth and uncertainties stemming from U.S. trade policies continue to dampen external demand,” a government spokesman said in the release.
Hong Kong’s economy has quickly lost momentum since the start of the year, falling into its first recession in a decade in the third quarter. Its status as a regional trade hub has left the city exposed to the trade conflict while more than five months of protests in the streets have taken a toll on retail, restaurants, hotels and other services industries.
However, optimism is growing that China and the U.S. are progressing in trade talks. The two nations “reached consensus on properly resolving relevant issues” and agreed to stay in contact on the remaining points for a “phase one” trade deal during a phone call Tuesday morning Beijing time, the Ministry of Commerce said in a statement.
To contact the reporter on this story: Eric Lam in Hong Kong at elam87@bloomberg.net
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger
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