July saw the value of total exports and imports rise to $265.1 billion and $284.6 billion - up 11.1% and 15.4% on the same month last year, the Census & Statistics Department says.

Within this total, the value of re-exports grew 12.4% to $256.4 billion while the value of domestic exports shrunk 16.3% to $8.8 billion.

A visible trade deficit of $19.5 billion, equivalent to 6.8% of the value of goods imports, was recorded in July.

For the first seven months of the year as a whole the value of total goods exports rose 9.4% over the same period last year. Within this total, the value of re-exports increased 10.2%, whereas the value of domestic exports decreased 9.3%.

A visible trade deficit of $138.7 billion, equivalent to 7.9% of the value of goods imports, was recorded in the first seven months of the year.

Comparing the three-month period ending July 2008 with the preceding three months on a seasonally adjusted basis, the value of total goods exports remained virtually unchanged. Within this total, the value of re-exports increased 0.5%, whereas the value of domestic exports fell 11.3%. The value of goods imports increased 4.9%.

Future outlook remains uncertain

The department said merchandise exports re-accelerated to double-digit growth in July after the June dip. However, despite the strong export performance in July, the outlook for the rest of the year continues to be clouded by uncertainties in the global economic environment.

The department forecasts the weakness in the US economy will continue to drag down Hong Kong's export performance. The increasingly apparent slow-down in Europe, and the combined impact of slowing US and EU economies on export-dependent Asia also requires close monitoring.