Hong Kong exports jump 33.6% in January, racking up best monthly performance in 3 years
- January exports jump to HK$388.7 billion, marking fourth straight month of growth
- Imports jump 21.7 per cent year on year in the month to HK$385.1 billion
Hong Kong’s exports rose 33.6 per cent year on year in January, the best monthly performance in three years, with the government citing seasonal effects such as the Lunar New Year as factors for the increase
Growth was primarily driven by strong demand in Asia, the Census and Statistics Department said on Tuesday.
January’s exports jumped to HK$388.7 billion (US$49.8 billion), marking the fourth straight month of growth and the best monthly performance since January 2021, according to the department.
Imports rose by 21.7 per cent year on year in January to HK$385.1 billion, creating a trade surplus of HK$3.6 billion, equivalent to 0.9 per cent of imports for the month.
A government spokesman cautioned that the value of merchandise exports jumped against a very low base of comparison a year ago, which was partly due to the timing of the Lunar New Year holiday.
He said it would be more meaningful to examine the figures for January and February combined, when available, to assess the underlying situation.
Exports to mainland China, Hong Kong’s largest market, soared by 54.2 per cent in January. Those to the United States rose by 11.5 per cent, while those to the European Union fell. Exports to Asia surged 45.7 per cent year on year in the month.
“Looking ahead, slow global economic growth and geopolitical factors will continue to affect Hong Kong’s export performance in the near term,” the spokesman said. “The government will monitor the situation closely.”
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The sectors that saw the most significant year-on-year increase in exports in January were “electrical machinery, apparatus and appliances, and electrical parts”, rising 42.8 per cent or HK$55.7 billion and “telecommunications and sound recording and reproducing apparatus and equipment”, increasing by HK$10.2 billion, or 25.1 per cent higher than a year ago.
In the three months between November and January, total exports jumped 16.4 per cent to HK$1.16 trillion year on year.
Weak global demand cast a shadow on Hong Kong’s post-pandemic economic recovery, which rebounded by a less-than-expected 3.2 per cent growth last year from a contraction in 2022.
Economist Andy Kwan Cheuk-chiu cautioned that exports were still weak globally and that the leap in one month was not representative as the base was low, adding that figures across one to two quarters would give a better indication of the situation.
“Given the performance of exports and imports was bad in 2021, 2022 and 2023, the base is very low,” he said. “So when the performance is suddenly improved a little, it will come across as a significant jump.”
Kwan added the economy in many Asian regions and countries was relatively healthy due to the stock market and asset prices, which fuelled re-exports from the mainland via Hong Kong, and which he foresaw as a long-term trend.
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“The exports from the mainland would be better off to be more focused on the Asian market as their demand grows,” he said.
“The European economies are regressing and [the mainland’s] relationship with the US isn’t great, so the weighting of exports to Asian regions and countries is likely to grow.”
Kwan said one of the reasons for the surge in exports to China was Lunar New Year falling in February and that trade would ramp up before the holidays.
Looking ahead, he said the US presidential election, the war in Gaza and the wider geopolitical situation in the Red Sea could pose challenges to global trade.
“These factors will add uncertainty to the market,” he said. “If something happens that interrupts logistics at sea, that could spell trouble for imports and exports and cause prices to rise significantly.”
Financial Secretary Paul Chan Mo-po will deliver his update on the city’s economic performance and outlook during his budget address on Wednesday.
