The impact of Brexit on Hong Kong’s garment exports
Pan Yongcai, chief economist of global markets at the Hong Kong Trade Development Council, said that Britain’s departure from the European Union will have a big impact on the British mainland in all aspects. It is believed that it will cause the depreciation of the pound, local building prices and economic growth to fall, which will indirectly bring about Hong Kong’s exports. to influence.
Data shows that the UK accounts for about 2% of Hong Kong’s export value, with a scale of about HK$55 billion.
He continued that the UK is the most attractive country for investment in the EU, and many large companies use the UK as a base to develop business in other EU countries. However, leaving the EU will destroy the long-standing agreement between the UK and the EU, making it possible for these companies to Investment in the UK will be reduced or scaled down, but it is believed that there will be no impact on Hong Kong in the short term.
Pan Yongcai pointed out that it is currently difficult for Hong Kong exporters to take any response measures to the UK’s departure from the EU, but if they believe that there are uncertainties in the trade currency, it is recommended to hedge and diversify business development, such as developing emerging markets, to reduce the impact of the single market.
The UK’s departure from the EU will have an impact on Hong Kong’s garment exports, and we will be cautious and wait-and-see on placing orders in the short term.
Lam Xuanwu, chairman of the Hong Kong Shippers Committee and chairman of Metro Knitting, also pointed out that the UK’s departure from the EU may not have a big impact on Hong Kong’s export industry, because currently manufacturers do not decide orders arbitrarily and mainly conduct transactions in US dollars, so it may not necessarily Affected by the depreciation of the British pound.
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