Hong Kong’s exports fell in May for a 13th consecutive month as weak demand for goods from China and the world continue to pose challenges for the financial hub’s economic outlook. 

Overseas shipments dropped 15.6% from a year earlier, the Census and Statistics Department said Tuesday. That was worse than a median estimate for an 11.1% decrease in a Bloomberg survey of economists. 

Imports fell 16.7% from a year ago, exceeding the median estimate of a 10.2% decline in a Bloomberg survey. The trade deficit was HK$26.4 billion ($3.4 billion).

Exports were weak across the board. Shipments to China fell 17.5% in May from the prior year, worse than April’s 12.9% decline. The world’s second-largest economy has faced concerns about its slowing recovery in recent weeks.

Exports to India fell 30.7%, while those to the US, Japan and Korea also recorded double-digit drops.

“The rate hikes from Hong Kong’s major trade partners have hampered demand,” contributing to the decline in exports, said Samuel Tse, economist at DBS Bank Ltd. Another factor is that cargo and capacity flight in Hong Kong are also still lower than pre-pandemic levels, he added.

Trade performance in the latter half of the year will depend on “whether the Chinese economy rebounds on stimulus and other trading partners’ factory activities resume,” Tse said.

The city’s exports have struggled over the past year because of waning demand from China and the rest of the world, becoming a key challenge to the financial hub as it recovers post-pandemic. 

Hong Kong emerged from recession in the first quarter as its borders reopened and spending recovered, offering some optimism for the economic outlook in 2023. A tourism comeback, particularly from mainland visitors, is helping growth. Bloomberg Economics forecasts a 5.2% expansion in gross domestic product this year.