Hong Kong`s 10pc quarterly export decline blamed on Euro debt crisis

HONG KONG`s exports slowed during the third quarter of this year finishing in September with the steepest decline blamed on the impact of the Europe debt crisis and global austerity.

The volume of total goods exported in the third quarter dropped to 1.1 per cent with September recording a total goods exported decline year-on-year of 10.9 per cent, re-exports off 10.4 per cent and domestic exports down 36 per cent. Imports dropped by 0.1 per cent in third quarter and 4.4 per cent in September, according to the latest figures from the Hong Kong Census & Statistics Department.


The slight contraction in the second quarter 2011 continued in the third quarter with a further decline in total exports of 1.1 per cent, re-exports 0.8 per cent with domestic exports down 20.2 per cent. Imports slightly decreased by 0.1 per cent.


During the first nine months overall goods exported increased 3.5 per cent, imports slightly higher at 5.7 per cent, but domestic exports dropped 17.3 per cent and re-exports increased by four per cent, compared to same period 2010.


The contraction of the Hong Kong economy in the third quarter is in contrast to the same period in 2010 when exports of goods and services rebounded strongly fuelled by recovery and China`s fiscal and monetary stimulus programme.


Prices of re-exports year-on-year between April and September increased by 8.2 per cent, domestic exports up 6.8 per cent while creating total goods exports increased 8.2 per cent and import prices increased 8.4 per cent.


Compared to same month in 2010, September prices of total exports increased 8.1 per cent, imports by eight per cent, goods re-exports 8.1 per cent and domestic exports 7.8 per cent.