*******************************************************
In February 2007, the values of Hong Kong's total exports and imports of goods both showed year-on-year increases. The Census and Statistics Department (C&SD) released today (March 26) the external merchandise trade statistics for February 2007.
As the trade flows in January and February of each year tend to show considerable volatilities due to difference in timing of the Lunar New Year Holidays, it is useful to analyse the trade figures for these two months taken together.
Taking January and February as a whole to neutralise the distortion caused by the difference in timing of the Lunar New Year Holidays, the value of total exports of goods rose by 10.2% over the same period in 2006. Within this total, the value of re-exports increased by 13.5%, while the value of domestic exports decreased by 35.3%. Concurrently, the value of imports of goods increased by 7.8%. A visible trade deficit of $11.9 billion, equivalent to 3.1% of the value of imports of goods, was recorded in the first two months of 2007.
In February 2007, the value of total exports of goods (comprising re-exports and domestic exports) increased by 11.6% over a year earlier to $171.4 billion, after a year-on-year increase of 9.2% in January. Within this total, the value of re-exports increased by 14.6% to $165.2 billion in February, while the value of domestic exports decreased by 34.7% to $6.2 billion. Concurrently, the value of imports of goods increased by 1.3% over a year earlier to $178.9 billion in February 2007, after a year-on-year increase of 14.1% in January. A visible trade deficit of $7.5 billion, equivalent to 4.2% of the value of imports of goods, was recorded in February 2007.
Comparing the three-month period ending February 2007 with the preceding three months on a seasonally adjusted basis, the value of total exports of goods rose by 3.5%. Within this total, the value of re-exports increased by 4.3%, while the value of domestic exports went down by 13.8%. Meanwhile, the value of imports of goods increased by 1.4%.
Analysis by country/territory
For the first two months of 2007 as a whole, year-on-year increases were registered in the values of total exports to most major destinations, in particular the United Kingdom (+23.4%), Italy (+18.0%), the mainland of China (the Mainland) (+11.3%) and the United States of America (+7.9%). However, a year-on-year decrease was registered in the value of total exports to Korea (-8.1%).
Over the same periods of comparison, year-on-year increases were registered in the values of imports from many major suppliers, in particular the Philippines (+20.6%), the United States of America (+17.8%), the Mainland (+11.4%), Singapore (+11.2%) and Thailand (+6.4%).
Comparing February 2007 with February 2006, significant increases were registered in the values of total exports to many major destinations, in particular the United Kingdom (+66.2%), Italy (+53.6%), the United States of America (+26.4%), Germany (+14.8%) and the Netherlands (+10.3%).
Over the same periods of comparison, increases were registered in the values of imports from some major suppliers, in particular the Philippines (+20.7%), the Mainland (+9.0%) and Singapore (+8.8%). However, decreases were registered in the values of imports from Germany (-12.8%) and Taiwan (-6.4%).
Analysis by major commodity
For the first two months of 2007 as a whole, significant year-on-year increases were registered in the values of total exports of most principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $14.2 billion or 18.8%), "miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods" (by $6.6 billion or 25.8%) and "clothing" (by $5.8 billion or 19.0%).
Over the same periods of comparison, significant year-on-year increases were registered in the values of imports of many principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $13.0 billion or 15.3%) and "miscellaneous manufactured articles consisting mainly of baby carriages, toys, games and sporting goods" (by $7.2 billion or 37.1%). However, a year-on-year decrease was registered in the value of imports of "telecommunications and sound recording and reproducing apparatus and equipment" (by $3.9 billion or -8.0%).
Comparing February 2007 with February 2006, significant increases were registered in the values of total exports of many principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $9.8 billion or 27.9%) and "clothing" (by $6.3 billion or 62.3%). However, a significant decrease was registered in the value of total exports of "office machines and automatic data processing machines" (by $5.4 billion or -24.3%).
Over the same periods of comparison, significant increases were registered in the values of imports of some principal commodity divisions, in particular "electrical machinery, apparatus and appliances, and electrical parts thereof" (by $9.9 billion or 23.9%). However, significant decreases were registered in the values of imports of "office machines and automatic data processing machines" (by $4.3 billion or -22.4%) and "telecommunications and sound recording and reproducing apparatus and equipment" (by $4.2 billion or -16.4%).
Commentary
A government spokesman noted that merchandise exports continued to perform well on entering 2007, with total exports registering double-digit growth in the first two months of the year. It is noteworthy that while total exports to the Mainland remained strong, those to the EU showed notable improvement. Total exports to the US also stayed firm despite the expected weakening of demand in this market.
Looking ahead, the near-term trade performance would continue to hinge on the global economic environment, particularly the evolving situation in the US economy. Exchange rate movements are also another factor to gauge.
Further information
Table 1 at the annex presents the analysis of external merchandise trade figures for February 2007. Table 2 presents the original monthly trade figures from January 2004 to February 2007, and Table 3 gives the seasonally adjusted series for the same period.
The values of total exports of goods to ten main destinations in February 2007 are shown in Table 4, whereas the values of imports of goods from ten main suppliers are given in Table 5.
Table 6 and 7 show the values of total exports and imports of ten principal commodity divisions for February 2007.
All the merchandise trade statistics described here are measured at current prices and no account has been taken of changes in prices between the periods of comparison. A separate analysis of the volume and price movements of external merchandise trade for February 2007 will be released in late April 2007.
Detailed merchandise trade statistics analysed by commodity and by country/territory are published in "Hong Kong Merchandise Trade Statistics". The February 2007 issue of the "Hong Kong External Merchandise Trade" contains detailed analysis on the performance of Hong Kong's external merchandise trade in February 2007. This publication is available in mid-April 2007. Users can download this publication free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD. Print version of this publication is for sale at HK$92 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries on merchandise trade statistics may be directed to the C&SD (Tel: 2582 5042).
Ends/Monday, March 26, 2007
Issued at HKT 16:15
NNNN
