Hong Kong Exports Unexpectedly Jump 11.5% on China’s Demand
Hong Kong’s exports unexpectedly jumped 11.5 percent in October from a year earlier, more than any of eight analysts forecast, even as Europe’s debt crisis dims the outlook for demand.
Overseas shipments rose to HK$305.7 billion ($39.2 billion) after a 3 percent decline in September, the government said on its website today. The median estimate of economists surveyed by Bloomberg News was for a 1.9 percent gain.
China’s demand, “modest growth” in shipments to the U.S., the European Union and Japan, and a low year-earlier base for comparison helped to boost the number, the government said. Financial Secretary John Tsang said Nov. 21 that he expects exports to fall this quarter on weaker demand from Europe.
A global economic decline will “drag on Hong Kong’s trade in coming months,” Raymond Yeung, an economist at Australia & New Zealand Banking Group Ltd. in Hong Kong, said before today’s report. He sees a “serious risk” that the city’s economy will face another contraction.
Imports increased 10.9 percent last month from a year earlier, leaving a trade deficit of HK$23.1 billion, the government’s report showed today.
Hong Kong dodged a technical recession with 0.1 percent growth in the third quarter after the economy contracted in the previous three months.
-- With assistance from Michael Munoz and Marco Lui in Hong Kong. Editors: Paul Panckhurst, Lily Nonomiya
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