A cargo ship loaded with containers is pictured at the port in Hong Kong on Oct 5, 2019. (ANTHONY WALLACE / AFP)

HONG KONG - The value of Hong Kong's total exports decreased to HK$328.5 billion (about US$42.38 billion) in July, down three percent compared with the same month last year, the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) government announced on Wednesday.

The value of imports of goods dropped 3.4 percent to HK$358.3 billion year-on-year in the same month. A trade deficit of HK$29.8 billion, or 8.3 percent of the value of imports, was recorded for the period

The value of imports of goods dropped 3.4 percent to HK$358.3 billion year-on-year in the same month. A trade deficit of HK$29.8 billion, or 8.3 percent of the value of imports, was recorded for the period, the department said.

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Comparing the three-month period ending July with the preceding three months on a seasonally adjusted basis, the value of exports rose 1.7 percent while that of imports increased by 0.9 percent.

A spokesman for the HKSAR government said that exports to the United States, the European Union and many other major Asian markets fell further on a year-on-year basis amid subdued external demand. 

Meanwhile, exports to Chinese mainland sustained moderate growth alongside the solid economic recovery there.

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Looking ahead, the threat of COVID-19 will remain until an effective vaccine or treatment is widely available. The weak global economy, together with the tense China-US relations, will continue to cloud the outlook for Hong Kong's merchandise exports in the near term, the spokesman said. 

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