July saw the value of total exports and imports rise to 265.1 billion HK dollars (33.99 billion U.S. dollars) and 284.6 billion HK dollars (36.49 billion U.S. dollars) -- up 11.1 percent and 15.4 percent respectively on the same month last year, Hong Kong Census and Statistics Department said on Thursday.

Within this total, the value of re-exports grew 12.4 percent to256.4 billion HK dollars (32.87 billion U.S. dollars) while the value of domestic exports shrunk 16.3 percent to 8.8 billion HK dollars (1.13 billion U.S. dollars).

For the first seven months of the year as a whole the value of total goods exports rose 9.4 percent over the same period last year. Within this total, the value of re-exports increased 10.2 percent, whereas the value of domestic exports decreased 9.3 percent.

A visible trade deficit of 138.7 billion HK dollars (17.78 billion U.S. dollars), equivalent to 7.9 percent of the value of goods imports, was recorded in the first seven months of the year, the department said.

Comparing the three-month period ending July 2008 with the preceding three months on a seasonally adjusted basis, the value of total goods exports remained virtually unchanged. Within this total, the value of re-exports increased 0.5 percent, whereas the value of domestic exports fell 11.3 percent. The value of goods imports increased 4.9 percent.

The department said merchandise exports re-accelerated to double-digit growth in July after the June dip. However, despite the strong export performance in July, the outlook for the rest of the year continues to be clouded by uncertainties in the global economic environment.

The department forecasts the weakness in the United States economy will continue to drag down Hong Kong's export performance. The increasingly apparent slow-down in Europe, and the combined impact of slowing the United States and the European Union economies on export-dependent Asia also requires close monitoring.