Hong Kong's exports slumped in September - battered by the continued strength of the US dollar, sluggish economic growth in Japan and Western Europe and changing trade patterns in North America.
'We had expected some kind of rebound in the latter months of the year, but apparently things only deteriorated further,' Hang Seng Bank's manager of economic research Joanne Yim said.
Only the weakness of Hong Kong's own economy, which is thought to have constrained imports of consumer goods, prevented the territory's visible trade deficit from rising.
The September deficit was $4.6 billion, equivalent to 3.5 per cent of the value of imports. This compared with $4.3 billion, or 3.3 per cent of imports, a year earlier.
Domestic exports especially were hard-hit, with their value dropping 13.5 per cent to $18.3 billion. Re-exports rose 2.2 per cent to $107.8 billion.
Ms Yim said the strength of the US dollar, which was trading at a 31/2-year high against the Japanese yen, was making the territory's exports less competitive.
Also, economic recovery in Japan and Western Europe had been slower than expected, dampening demand for the territory's goods in two of its largest markets.
