HKTDC Export Index 4Q22: Hong Kong exports expected to grow 5% in 2023 – Press Release

Normalisation of cross-border trucking boosts export momentum

HONG KONG, Dec 15, 2022 – (ACN Newswire) – The Hong Kong Trade Development Council (HKTDC) projects that Hong Kong’s exports will grow 5% next year – a recovery from the 6% decline this year. HKTDC Director of Research Irina Fan said: “Hong Kong’s exports will gradually regain growth momentum amid the receding pandemic, easing of COVID-19 restrictions and resumption of cross-border land transportation.”

HKTDC Director of Research Irina Fan (R) and Assistant Principal Economist (Greater China) Alice Tsang announced the HKTDC Export Index for the fourth quarter of 2022 and export forecast for 2023 at a press conference today (15 December)
HKTDC Director of Research Irina Fan
HKTDC Assistant Principal Economist (Greater China) Alice Tsang

The latest HKTDC Export Index survey shows that significantly more exporters indicated businesses were no longer suffering from pandemic-related problems (up 10.6 percentage points from the previous quarter to 32.7%), with progress made towards resolving the challenge of high transportation costs and logistics bottlenecks.

Yet, more respondents said buyers haggled over prices (25.7%, up 9.3 percentage points) and reduced order sizes (40.1%, up 5.0 percentage points). Most respondents said they expected sales next year to decrease (49.4%) or remain on a par with sales this year (28.3%). “Lingering geopolitics, coupled with the risk of global stagflation, has dampened consumer sentiment and business confidence,” Ms Fan explained.

Recessions risks

The risks of an economic slowdown or recession in major markets (36.2%) and difficulties in cross-border travel (21.1%) have become exporters’ key concerns. In response, most said they would develop new products (50.0%), stabilise cash flow (34.6%) and cut costs (30.5%) in the coming year. Other business strategies to be adopted included lowering minimum order quantities, increasing the use of e-commerce for sales and purchases as well…