Macroeconomic Forecast Hong Kong

Hong Kong's Census and Statistics Department reported an increase in the merchandise trade deficit to HKD35.69bn (US$4.58bn) in May, compared with HKD25.09bn (US$3.22bn) a year ago. While goods exports increased by 10.1% year-on-year (y-o-y) to HKD279.94bn (US$35.95bn) in May, imports grew 13.0% y-o-y to HKD315.64bn (US$40.54bn). However, we expect the trade deficit to shrink in the latter part of the year as domestic demand weakens. We also expect the services surplus to narrow, as services exports underperform as a result of a trade slowdown.

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