Hong Kong posts sharper-than-expected drop in exports in June

Hong Kong’s exports fell for a second straight month, dropping more than economists estimated, as inflation hampers global economic activity.

June exports declined 6.4% from a year earlier, the Hong Kong government said Monday. That compared with the median estimate for a 0.7% drop. Deliveries to the mainland plunged 10.4%, while shipments to the US and European Union swung to a drop from an increase the previous month. 

The drop in exports led to the city posting a trade deficit of HK$68.5 billion ($8.7 billion), worse than the estimated HK$38.5 billion shortfall. 

“The worsening global economic outlook will pile on the pressure facing Hong Kong,” according to a government statement. “Global financial conditions are expected to tighten further as many major central banks continue to raise interest rates to curb inflation.”