Hong Kong's April trade slumps by double digits

Hong Kong's exports and imports slumped by double digits in April from a year ago, worse than expected, amid lackluster global demand.

April exports fell 13 percent year-on-year to HK$338.3 billion and for the 12th consecutive month, with the decrease widening by 11.5 percentage points compared to March.

For the first four months of 2023, exports decreased by 16.5 percent over the same period in 2022.

Similarly, imports declined by 11.9 percent to HK$374.9 billion.

Both the declines in exports and imports beat market estimates by 2 to 3 percentage points.

The trade deficit in April was HK$36.57 billion, about HK$2.8 billion higher than market expectations.

A government spokesman said exports are likely to be impacted by the weakness in advanced economies. However, some relief is anticipated due to the expected faster recovery of the mainland's economy.

Meanwhile, China is considering new tax incentives for high-end manufacturing companies, according to a person familiar with the matter, as Beijing seeks to bolster the economy and encourage more innovation in technology to counter US competition.

The tax policy being considered could save advanced manufacturers hundreds of billions of yuan, said the person.