Recently, China’s Hong Kong exports fell 13% in April, the 12th straight month of decline. Trade remains under pressure as the global economy continues to suffer from weak demand, higher interest rates in Europe and the United States, and inflation.
In the short term, the US rate-raising cycle is nearing its end and Europe and other advanced economies are still suffering from high inflation. If the weak external economic environment does not improve, it will be difficult to reverse the year-on-year decline in Hong Kong’s imports and exports for at least one or two quarters.
Vietnam’s continued export contraction suggests the global demand downturn has not yet turned a corner.
Recently, according to the statistics bureau of Vietnam, Vietnam’s imports contracted by 18.4% in May, exports contracted by 5.9%, the fourth consecutive monthly decline. Exports have fallen 11.6 per cent in the first five months of this year, while imports contracted 17.9 per cent.
In the year to May 15, the total import and export volume of Vietnam was 230.59 billion US dollars, down 15.4% year on year. Among them, exports were US $118.58 billion, down 12.8 percent, while imports were US $112.1 billion, down 18 percent year-on-year. The trade surplus exceeded $6.5 billion.
Cao Huu Hieu, General manager of Vinatex, said that the production and operation conditions in the second quarter are expected to continue in an unfavorable direction, with orders declining and no signs of improvement in the market. As one of the most export-dependent economies, Vietnam’s economy is vulnerable to a slowdown in global demand.
In an effort to spur growth, Vietnam’s central bank cut interest rates by 100 points in March, cutting the discount rate to 3.5 percent from 4.5 percent and overnight lending rates in the interbank market to 6 percent from 7 percent, and said it would further lower its policy rate to support growth.