This was due to a decline in the goods deficit and growth in the net inflow of primary income.

Hong Kong’s current account surplus has surged to $37.8b in Q2, which is twice as large compared to $15.4b in Q2 2018, according to data from the Census and Statistics Department (C&SD).

The surplus increase was mainly attributed to a slip in the goods deficit, growth in the net inflow of primary income, as well as an increase in the services surplus.

C&SD stated that it implies that Hong Kong continues to save more than invest, enabling the region to accumulate external financial assets (such as equity securities or debt securities) as a buffer against global financial volatilities.

The current account is a measure of the flows of goods, services, primary income and secondary income between residents and non-residents.