The value of total exports of goods fell 5.4% in February, over the same month last year, to $127.5 billion after a year-on-year rise of 34.8% in January.

Within this total, the value of re-exports fell 4.5% to $121.3 billion, while the value of domestic exports fell 20.4% to $6.3 billion.

In the same period, the value of imports of goods fell 10.9% over a year earlier to $137.7 billion.

A visible trade deficit of $10.2 billion, equivalent to 7.4% of the value of goods imports, was recorded.

The Census & Statistics Department said the year-on-year fall in merchandise exports was mainly caused by the different timing of the Lunar New Year holiday this year.

Taking the first two months of the year together to remove the distortion, total exports of goods maintained double-digit growth at broadly the same pace as the final quarter of last year.

The department said the surge in total exports in the first two months of 2005 remained broad-based across most major markets and across most major commodities.

While total exports of clothing experienced highly distinct growth in both January and February, conceivably lifted by the removal of quotas on textiles and clothing as from January 1, total exports of a wide range of commodities also attained double-digit growth.

The robust export performance was underpinned by sturdy global and regional demand, and it also reflects the prominent role of Hong Kong as a trade hub and a trade conduit between the Mainland and the rest of the world.

Taking January and February as a whole to neutralise the distortion caused by the difference in timing of the Lunar New Year, the value of total exports of goods rose 14.9% over the same period last year.

Within this total, the value of re-exports rose 15.8%, while the value of domestic exports fell 0.7%. At the same time, the value of imports of goods rose 11.4%.

A visible trade deficit of $11.7 billion, equivalent to 3.6% of the value of imports of goods, was recorded.

Comparing the three-month period ending February with the preceding three months on a seasonally adjusted basis, the value of total goods exports rose 3.6%.

Within this total, the value of re-exports rose 4.6%, while the value of domestic exports fell 10.7%. Meanwhile, the value of goods imports rose 4.2%.

In February, year-on-year decreases were registered in the value of re-exports to some major destinations, in particular Taiwan (-21%) and the Mainland (-13.1%). But significant rises were registered in the value of re-exports to the Netherlands (+25.8%), the UK (+21.2%) and France (+13.5%).

Values of domestic exports to many major destinations fell, in particular Germany (-57.3%), the UK (-42.3%), the Philippines (-38.2%) and the Mainland (-25.2%). But a significant rise was registered in the value of domestic exports to the Netherlands (+43.1%).

Also there were falls in the value of imports from all major suppliers, in particular Germany (-35.7%), South Korea (-26.9%), India (-26.5%), Japan (-19.0%) and Taiwan (-14.8%).

Taking the first two months of this year together, year-on-year increases were registered in the values of re-exports to all major destinations, in particular the Netherlands (+43.5%), Germany (+33.3%), the UK (+22.4%), France (+21.7%) and Singapore (+17.9%).

At the same time, there were year-on-year decreases in the values of domestic exports to some major destinations, in particular Germany (-47%) and the UK (-42.6%). But the values of domestic exports to the Netherlands rose 39.5%, Singapore 33.3% and Australia 32.9%.

In the same period, values of imports from most major suppliers registered year-on-year increases, in particular the Mainland (+17.8%), Singapore (+14%), Thailand (+13.4%) and India (+11.7%). But the value of imports from Germany fell 17.7%.

In February, year-on-year falls were registered in the value of re-exports of some principal commodity divisions, in particular textiles (by $1.9 billion or 27.1%). But increases were registered in the value of re-exports of clothing (by $4 billion or 58.3%) and office machines and automatic data processing machines (by $1.7 billion or 11.4%).

During the month, the value of domestic exports of some principal commodity divisions fell, particularly clothing (by $1.3 billion or 41.3%) and miscellaneous manufactured articles consisting mainly of jewellery, and gold and silversmith wares (by $371 million or 33.6%). But the value of domestic exports of office machines and automatic data processing machines rose $300 million or 81.6%.

There were also falls in the value of imports of most principal commodity divisions, in particular telecommunications and sound recording and reproducing apparatus and equipment (by $2.5 billion or 13.5%), textiles (by $2.2 billion or 29.2%) and non-metallic mineral manufactures (by $1.1 billion or 15.7%).

Taking the first two months of this year together, there were year-on-year increases in the value of re-exports of most principal commodity divisions, in particular office machines and automatic data processing machines (by $11.4 billion or 36.3%), electrical machinery, apparatus and appliances, and electrical parts thereof (by $8.7 billion or 17.8%) and telecommunications and sound recording and reproducing apparatus and equipment (by $8.4 billion or 24.6%).

At the same time, year-on-year drops were registered in the value of domestic exports of some principal commodity divisions, in particular clothing (by $2 billion or 26.8%). But year-on-year rises were registered in the values of domestic exports of office machines and automatic data processing machines (by $909 million or 108.8%) and electrical machinery, apparatus and appliances, and electrical parts thereof (by $588 million or 33.8%).