Hong Kong's February Trade Growth Slows, Lunar New Year Impacts Data

Hong Kong's export and import growth rates in February showed a slowdown, marking the slowest pace in three months. According to RTHK, exports increased by 24.7% year-on-year last month, a decrease of 9.1 percentage points from January, continuing a two-year rise. Imports grew by 29.9%, slowing by 8.2 percentage points, marking a 14-month consecutive increase. The visible trade deficit stood at HKD 64.2 billion. A government spokesperson highlighted that the data was influenced by the timing of the Lunar New Year holiday, suggesting that a combined analysis of January and February would be more appropriate. In the first two months, exports rose by 29.6% year-on-year, while imports increased by 34.1%, resulting in a visible trade deficit of HKD 79 billion. Exports to mainland China saw a nearly 32% increase, while exports to Malaysia surged over 95%. Imports from mainland China rose by 38%, with imports from South Korea, Vietnam, India, and the United Kingdom increasing by over 93% to more than double. By product category, exports of "electrical machinery, instruments, and appliances and parts" increased by over 35%, and "communication, recording, and audio equipment and instruments" rose by approximately 48% in the first two months. The government spokesperson stated that merchandise exports continued to perform strongly at the beginning of the year, with exports to most markets and major commodity categories continuing to rise. Global demand for AI-related electronic products is expected to remain robust, potentially supporting Hong Kong's trade performance. However, with rising geopolitical tensions in the Middle East, global economic uncertainty has significantly increased, and trade policies of major advanced economies remain volatile. The government will continue to closely monitor developments and remain vigilant.