Hong Kong Exports Fell Significantly in Value
Export index of China’s special administrative region fell by more than 20% in January 2020 and amounted to slightly less than $ 270 billion. Hong Kong government officials explain this decline as the early advent of the Lunar New Year, as well as the coronavirus epidemic COVID-19. If in 2019 the lunar New Year came in early February, then in 2020 it happened in late January. In addition, the increase of the Hong Kong exports in December 2019 was offset, since its January fall greatly exceeded the growth indicators in December - almost a 23% drop against a little more than 3% growth.
Also, imports decreased by more than 16%, thereby continuing the decline recorded in the previous month. Now the value of imports is not more than 300 billion dollars. So in Hong Kong, a trade deficit of more than 10% of imports in value formed, which in absolute terms exceeded 30 billion US dollars.
Сontinuing its march around the world, coronavirus will cause severe competition Hong Kong goods in foreign markets, which in the next six months will serve as an additional source of problems for economics of the territory and a further drop in the value of exports. This view was voiced by a representative of the Hong Kong government, who added that the threat of a viral epidemic will significantly affect the economy in the region and is likely to cause a noticeable decline in the production of goods.
Situation in the Asia-Pacific Region Worsened
Comparing with last year's export figures for the same period, the situation in the Asia-Pacific region this year has already worsened by 21% in most areas. Exports to Hong Kong's largest partner countries declined from 21% to mainland China to 28% to Japan. Also, the major partners of the city in the region are Singapore, Vietnam, Thailand and Taiwan, whose export volumes fell by 19%, 20% and more than 21%, respectively. Imports from these countries also declined, where the largest drop is up to 25% from mainland China.
The situation is not easier with the international partners of Hong Kong from other world regions, such as the USA, Great Britain and Germany. Export volumes to these countries fell even more significantly than to Asian neighbors. Most of all, exports fell to the UK - by 37.4%, then to the USA - by 33% in monetary terms. However, imports from the UK on the contrary increased as well as from the Vietnam, by 15% and 20.5% respectively.
Last month, Hong Kong saw the largest decline in exports of equipment for recording and reproducing sound, as well as telecommunications equipment, a decrease in value which reached 24.2%. The next sector, with a record drop in exports was the computing and office equipment, falling 24%. The industry of electric machines, their components, apparatus and devices, showed a decrease of 15.4% in monetary terms.