"With Europe on the brink of recession, Asian economies including Hong Kong saw weaker demand for exports," a Hong Kong government spokesman said.
"Hong Kong's exports will continue to face strong headwinds from the deepening euro zone sovereign debt crisis and unsteady economic situations in advanced economies," he added.
Analysts and Hong Kong government officials have said the outlook for Hong Kong's economy and exports does not look promising. Exports fell 3 percent year on year in September, the first drop in value in almost two years.
The disappointing Christmas holiday retail sales in many countries including Britain, France, Italy and Japan pointed to further challenges for Hong Kong's exports next year, Hong Kong's Trade Development Council said in a report.
"Christmas sales in Hong Kong's overseas markets are generally regarded as a major indicator of Hong Kong's export prospects for the year ahead," the report said.
The report urged exporters to seek opportunities in emerging markets such as Russia and Latin America.
Hong Kong's exports rose 2 percent from a year earlier to HK$278.6 billion in November, while imports grew 8.8 percent to $322.7 billion.
For the first 11 months, total exports rose 10.4 percent year on year, with imports up 12.2 percent, resulting in a trade deficit of HK$378.5 billion.
Growth in exports in the first 11 months of the year was largely fuelled by stronger demand from mainland China, India, South Korea, Taiwan and Vietnam.
Exports to Britain and United States were down 1 percent and 0.4 percent, respectively, in the same period.
Hong Kong's exports and imports are predominantly re-exports to and from China, the world's second-largest economy.
The surprise rise in October exports was attributed to robust demand from mainland China and a relatively low year-earlier comparison base.
Mainland China accounts for more than half of external demand for Hong Kong goods.
China's manufacturing activity is expected to contract again in December, suggesting the country is finishing 2011 on a weak note amid the global malaise.
The median estimate from a poll of 14 economists is for an official PMI reading of 49.1, inching up from 49 in November but still near the weakest level since early 2009. (Reuters)
