Hong Kong's exports fell in value again last month, weighed down by the continuing economic malaise across Asia and the ongoing impact of air-cargo problems out of the city, the Government said yesterday. Figures released by the Census and Statistics Department showed total exports fell 8 per cent in August from a year earlier to $119.1 billion. However, trade in August declined at a less dramatic rate than in July, when problems at the newly opened airport were at their height. Domestic exports were hardest hit, falling 10.3 per cent to $17.5 billion, while re-exports were down 7.6 per cent to $101.6 billion from August last year. Domestic exports were 3.8 per cent down from the month before, although re-exports actually rose 0.7 per cent over the same time. During the three-month period from June to the end of August, the fall in exports remained consistent, dropping 7.9 per cent. One bright spot in the statistics was the sharp contraction of the trade deficit to $700 million - equivalent to 0.6 per cent of imports - from a deficit of $10.3 billion in August last year. This was due mainly to the significant drop in imports, which fell 14.2 per cent to $119.9 billion, reflecting the weakness of local demand. Imports were down 13.4 per cent to $365.96 billion over the three-month period from June to August. Total exports were down 4.5 per cent since the start of the year, with domestic exports down 6.8 per cent and re-exports 4.1 per cent.