New rebate rule and timing of Lunar New Year blamed for slowdown in shipments
Hong Kong's exports in January grew at their slowest rate in 20 months, surprising many who had been expecting continued stronger growth.
Analysts blamed the slowdown on several factors including the new, lower export rebates on the mainland and the timing of Lunar New Year this year.
Total shipments of goods last month expanded by a barely perceptible 0.2 per cent year on year to $135.3 billion, after leaping 15.8 per cent in December. January's growth rate was the slowest since shipments contracted by 1.8 per cent in May 2002.
Most economists had been forecasting exports to grow anywhere from 5 to 12 per cent.
Similarly, imports also suffered a sharp contraction, and last month grew by only 0.9 per cent, to $134.5 billion, after surging 17.9 per cent the month before. That resulted in a trade surplus of $839 million.
'I think the decline is actually reflecting the China VAT [value-added tax] effect and also Chinese New Year, definitely,' said HSBC economist George Leung Siu-kay.
