Hong Kong's total export and import values recorded strong year-on-year increases in May.

The Census & Statistics Department said the value of total exports (comprising re-exports and domestic exports) rose 15.7% over a year earlier to $165.4 billion, after a year-on-year increase of 19.3% in April. Within this, the value of re-exports rose 16.8% to $155.5 billion, while domestic exports rose 0.4% to $9.9 billion.

The department said merchandise exports remained strong and continued to rise at a considerable pace, and intra-regional trade is again the main driver underpinning such robust performance, with exports to almost all East Asian economies sustaining double-digit increases in May.

Exports to the European Union stayed vibrant while those for the US picked up in May, after a relatively modest performance early in the year.

The value of imports rose 19.9% in May over a year earlier to $174.8 billion, after a year-on-year increase of 24.6% in April.

It said retained imports continued to surge in May, reflecting buoyancy in domestic demand. Also relevant is a relatively low base of comparison in the same period last year, when the economy was severely hit by SARS causing import intake to shrink in response to the plunge in local demand.

Visible trade deficit enlarges

A visible trade deficit of $9.4 billion, equivalent to 5.4% of the value of imports of goods, was recorded in May. This was larger than the corresponding deficit of $2.8 billion, equivalent to 1.9% of the value of imports of goods last year.

For the first five months of 2004 as a whole, the value of total exports rose 14.9% over the same period last year. Within this, the value of re-exports rose 15.9%, and the value of domestic exports rose 1%.

Within the same period, the value of imports of goods rose 18.5%. A visible trade deficit of $58.7 billion, equivalent to 7.2% of the value of imports of goods, was recorded in the first five months of 2004. This was larger than the corresponding deficit of $29.5 billion, equivalent to 4.3% of the value of imports of goods, recorded in the same period last year.

Comparing the three-month period ending May with the preceding three months on a seasonally adjusted basis, the value of total exports rose 4.1%. Within this, the value of re-exports rose 4.1%, domestic exports rose 2.8%, while imports rose 4.6%.