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Hong Kong exports to shrink 2 per cent in 2020, in second straight year of contraction, Trade Development Council forecasts

  • Trade Development Council blames declines on a bleak global economic outlook
  • In terms of total exports, the US market was the worst hit in the first 10 months of 2019, falling 13.2 per cent year on year

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Hong Kong companies have been urged to seek alternative manufacturing bases. Photo: Roy Issa
Ng Kang-chung

Hong Kong’s exports will shrink by a further 2 per cent in 2020, the second year in a row of contraction following a 4 per cent fall in 2019, according to the latest forecast by the city’s trade development body.

Although the predicted decline is seen as slowing, economists and researchers warn that the local economic outlook will largely be plagued by uncertainties with the softening of global demand, as well as lingering US-China friction.

In terms of the city’s total exports, the US market was the worst hit in the first 10 months of 2019, falling 13.2 per cent year on year, with a total value of HK$258 billion (US$33 billion).

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Exports to China fell 6 per cent in the same period, to HK$1.798 trillion. But exports to the Middle East grew 5.7 per cent, compared with negative growth of 0.3 per cent for 2018.

Hong Kong’s economy shrank 3.2 per cent in the third quarter. Photo: Roy Issa
Hong Kong’s economy shrank 3.2 per cent in the third quarter. Photo: Roy Issa
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Last year, Hong Kong’s exports to the United States grew 8.1 per cent, to HK$357 billion, while 8.6 per cent growth was recorded for the China market, to HK$2.287 trillion.

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