Hong Kong showed a trade deficit of HK$138.8 billion last year as exports failed to keep pace with imported goods.

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Total value of goods exported from the island rose by 9.4 percent in 2006, while imports increased 11.6 percent.

The entrepot value of goods transhipped through the city's port increased by 10 percent at the same time its exports decreased by 1.1 percent, the local government's Census and Statistics Department announced January 25.

In December 2006, entrepot and local exports increased by 13.7 percent over a year earlier to HK$214.7 billion, after a year-on-year increase of 14.2 percent registered in November.

A spokesman from the government said the mainland remains the city's biggest export destination, with exports to other major markets, particularly the US and Europe, also holding up well.

He said the generally resilient global economy, a vibrant mainland economy and recent declines in oil prices should support external demand. The weakness of the US dollar is another factor favorable to Hong Kong's exports.

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