5
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As the value of total exports in September 1996 was smaller than that of total imports, a visible trade deficit of $4.6 billion, equivalent to 3.5% of the value of imports, was recorded. This was the lowest trade deficit recorded in a single month since October 1995.
For the first nine months of 1996 as a whole, the value of total exports grew by 4% over the same period last year. The value of re-exports rose by 6.7%, while that of domestic exports decreased by 8.9%. The value of imports showed an increase of 2.5%
In the first nine months of 1996. a visible trade deficit of $102.1 billion. equivalent to 9% of the value of imports, was recorded. This was smaller than the deficit of $114 billion. equivalent to 10% of the value of imports, recorded in the same period in 1995.
Commenting on the latest trade figures, a government spokesman said export performance remained exceptionally volatile.
After some pick-up in July and August, exports weakened again in September 1996. However, it is noted that many economies in the region generally suffered a setback in export growth, affected to various extent by the global downturn in the electronic product cycle.
NAFTA (North American Free Trade Agreement) could have also diverted some of US import demand which was formerly sourced from Asia to Mexico and Canada.
Reflecting this. US imports from these two economies continued to show notable increases in the first seven months of 1996, notwithstanding a generally slower growth in US import demand over the same period.
On the other hand, largely reflecting continued inventory adjustment, retained imports in Hong Kong declined further by 5.1% over a year earlier, albeit less rapid than in the previous two months. The visible trade deficit continued to narrow.
The table annexed presents the external trade figures in September 1996.
A more detailed analysis of Hong Kong's external trade for September 1996, by commodity and country, will be released in mid-November.