January imports plunged a record 30.2% from the same period a year ago to HK$316.3 billion, the lowest since February 2020 at HK$277.1 billion. "The slower global economic growth will continue to pose severe challenges to Hong Kong's export performance in the near term," a government spokesperson said, adding that expected faster growth on mainland China and the lifting of cross-boundary truck movement restrictions should alleviate pressure. The early arrival of Lunar New Year holidays caused disruption in production and shipments.
Hong Kong's visible trade deficit was HK$25.4 billion, the government added.
In December, total export values dropped 28.5% from the same period a year ago, and imports slumped 23.5% with a trade deficit of HK$51.65 billion.
"The collapse of Hong Kong's trade reflects the weak global demand due to high interest rates and the downturn in tech cycle," said Gary Ng, senior economist at Natixis Corporate and Investment Bank. "Despite the cyclical rebound in China's reopening, the pressure will persist through supply chains in the first half of 2023," Ng added.
($1 = 7.8465 Hong Kong dollars) (Reporting by Twinnie Siu and Donny Kwok; Editing by Andrew Cawthorne)
