HONG KONG’S total exports in June fell for the 14th straight month, dampened by a slowdown on the Chinese mainland, with the city’s factories bracing for more pain in coming months from the impact of Brexit.
Open and trade-dependent economies in Asia such as Hong Kong are expected to be among the most vulnerable to a slowdown in global trade from Britain’s shock vote to leave the European Union as the effects filter through factory supply chains, analysts say.
Hong Kong’s total exports in June fell 1 percent from a year earlier to HK$296.5 billion (US$38.2 billion), government data showed Tuesday. Total imports fell 0.9 percent, in its 17th straight month of decline, to HK$342.1 billion.
In May, annual exports slipped 0.1 percent while imports dropped 4.3 percent.
For the first half of 2016, total exports value dropped 3.9 percent, while imports fell 5.6 percent. The city recorded a visible trade deficit of HK$199.6 billion for the first half period, equivalent to 10.8 percent of the value of imports.
“Looking ahead, the external trading environment remains challenging given the uncertainties associated with the outcome of the U.K. referendum in favor of leaving the EU, slow recovery in the advanced markets, monetary policy divergence among major central banks and heightened geopolitical tensions in various regions,” the government said, adding it will monitor the situation closely.(SD-Agencies)
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