Hong Kong exports record worst drop in decade as economist warns ‘worst is yet to come’
- Government warns of tough trading environment in months ahead
- Standard Chartered lowers GDP forecast for city to decline of 2.4 per cent
Hong Kong exports recorded the worst drop in a decade in January, down almost 23 per cent, as the government warned of a very tough trading environment in the next few months.
The value of total exports of goods plunged by 22.7 per cent over a year ago to HK$269.4 billion, after a year-on-year increase of 3.3 per cent in December, the Census and Statistics Department said on Tuesday.
This was the biggest drop since August 2009 when it was down by 32 per cent.
The imports of goods also dropped 16.4 per cent year on year to HK$300 billion in January, with a visible trade deficit of HK$30.6 billion for the month.
Exports had already recorded their sharpest drop in a decade in 2019, down 4.1 per cent under the shadow of the US-China trade war.
Iris Pang, Greater China economist of ING Banking Asia, said January’s exports were hit by the combination of the trade war, the technology war, and the timing of the Lunar New Year.