This week the external merchandise trade statistics for June 2008was released by Census and Statistics Department (C&SD). The value of imported goods increased by 1.3%compared to last year but the value of exports of goods decreased marginally by 0.6% in Hong Kong in June 2008.

After the increase in export’s comprising of both domestic & re export’s in May 2008 which is approx. 10.3%, now the value has decreased by 0.6% in June 2008. In June 2008, the value of re-exports increased marginally by 0.2%, whereas the value of domestic exports decreased by 20.2%.

Subsequently, in June 2008 the value of imports of goods grew by 1.3% over a year earlier, after a high increase of 15.4% in May 2008. A trade deficit is visible which is equivalent to 9.7% of the value of imports of goods, as recorded in June 2008.

As compared to the first half of 2007, the value of total exports of goods rose by 9.1% over the first half of 2008. Alarmingly within this total, the value of domestic exports decreased by 7.8% whereas the value of re-exports increased by 9.8%. As a result a tremendous trade deficit of 8.1% of the value of imports of goods, was recorded for the first half of 2008.

In the second quarter of 2008 the value of re-exports increased by 2.5%, on the other hand the value of domestic exports went down by 6.4%. Also, the value of imports of goods increased by 3.8%.

Total exports to Asia compared to June 2008 with June 2007, as a whole fell by 3.1%. The decreases in exports are mainly registered in some major destinations such as Korea, the mainland of China and Japan.

Marginal decreases apart from destinations in Asia, some other major destinations in other regions, including the United Kingdom and the USA also faced marginal deficits in exports.

As compared to exports in the first half of 2008 year-on-year increase were seen in the values of total exports to most major destinations like India, Singapore, Germany and the Mainland. But as compared in the same period, increases were registered in the values of imports from all major suppliers, particularly India, Thailand, Germany, the USA and Malaysia.