Hong Kong Exporters Show Cautious Optimism Amid Global Tensions

Hong Kong exporters have adopted a cautious stance in the first quarter of the year, as indicated by the Export Index, which shows both the current and expected indices below 50. According to RTHK, the survey was conducted between January and February, not accounting for the escalation of tensions in the Middle East. Pang Ming, the Director of Research at the Hong Kong Trade Development Council, noted that the survey was carried out before the U.S. Supreme Court's final decision on tariffs, reflecting exporters' cautious attitude towards the ruling and the impact of the Lunar New Year. He highlighted that some sub-indices performed well, with the trade value current index at 50.9, indicating expansion. Confidence indices for sectors such as jewelry and garments also showed strength. Pang expressed a positive yet cautious outlook for Hong Kong's trade, with encouraging growth in export values during January and February. Despite recent disruptions in supply chains due to Middle Eastern tensions, global demand remains robust, particularly in artificial intelligence and related electronic products. He described the current quarter's export confidence index as a moderate adjustment. The Trade Development Council emphasized the need to monitor the impact of oil prices on freight and raw material costs, which could affect shipping operations in the future.