No festive cheer: Hong Kong factory owners bemoan shrinking year-end exports as inflation, recession bite
- Intermittent factory closures in mainland China have hit output, taking their toll on exports too
- ‘A particularly miserable festive season’ as manufacturers see exports plunge by over 30 per cent
Hong Kong manufacturers and exporters of everything from toys to home decor items, electronic goods and children’s pyjamas are staring at their bleakest festive season in years.
Industry leaders reported business dropping sharply as overseas buyers have reduced or cancelled orders in the face of belt-tightening, high inflation and recession in their countries.
On-again, off-again factory operations in mainland China, resulting from its stringent zero-Covid policy over almost three years, have also caused production delays and taken a toll on Hong Kong exports.
“This festive season is particularly miserable for us,” said Dennis Ng Kwok-on, managing director of Hinasia (HK) Industrial Company, which makes gift items such as photo frames, souvenirs and home decor products.
He said that in 2020 and last year, in the midst of the Covid-19 pandemic, the company managed to hit at least 50 per cent of its pre-Covid level of business over the Christmas season, which usually accounted for close to half its annual revenue.