Hong Kong's strong first-quarter economic expansion was driven chiefly by two engines: goods exports and investment. Goods exports led by a considerable margin, outpacing investment by several percentage points. Within the export breakdown, services — which habitually run a surplus — contributed modestly. It was goods trade, which typically runs a deficit, that surged more than 20 per cent year on year. Has decoupling from China not been the prevailing narrative? Exporters were complaining bitterly not long ago. What explains this sudden reversal?
