The Weakened "International City" Hong Kong... Exports Decline for 14 Consecutive Months

Hong Kong, once regarded as a global city, has continued to experience a decline in exports for 14 consecutive months, increasing its trade deficit.

According to Chinese economic media Caixin on the 26th, the local Census and Statistics Department announced that Hong Kong's total merchandise exports last month amounted to HKD 337.4 billion (approximately KRW 55.1244 trillion), down 11.4% compared to the same period last year. During the same period, merchandise imports were HKD 393.9 billion, a decrease of 12.3%.

[Image source=Reuters Yonhap News]

Although the decline in exports and imports improved compared to the previous month (May), which saw decreases of 15.6% and 16.7% respectively, the trade deficit reached HKD 56.6 billion, the largest in a year.

By region, total exports to Asia decreased by 12.0%, with Malaysia (31.9%) and Singapore (26.2%) experiencing significant declines. Outside Asia, exports to Germany (29.0%), the United States (22.1%), and the United Kingdom (14.6%) also dropped sharply.

By product category, exports of electronic machinery and parts amounted to HKD 171.08 billion, down 10.6% year-on-year. Office equipment and automatic data processing machines plunged by 23.5%.

Hong Kong's Dah Sing Bank forecasted that Hong Kong's export performance will continue to face pressure due to the global economic slowdown. It particularly noted that the mainland's economic momentum is weak and manufacturing activity is contracting. However, it observed that recent economic support measures introduced by the mainland could help stabilize demand.

Hong Kong has struggled to regain its competitiveness as an international city even after China's transition to a "with-COVID" policy. In the Global Power City Index (GPCI) by Japan's Mori Memorial Foundation, Hong Kong fell from 13th place in 2021 to 23rd last year. It was ranked 7th in 2016. In the Global Financial Centres Index (GFCI) released in March, Hong Kong slipped to 4th place, losing 3rd place to Singapore. Hong Kong's GDP growth rate last year was -3.5%.

This content was produced with the assistance of AI translation services.