HONG KONG's exports volume fell 5.8 per cent year on year in December to HK$339.9 billion (US$43.3 billion) in trade value, said the Hong Kong Government. December imports declined seven per cent to HK$391.2 billion as China trade tensions deepened with the threats of an escalating trade war with the US clouded the new year with uncertainty. "The near-term outlook for merchandise trade is challenging amid moderating global economic growth and the uncertainty surrounding the US-mainland trade relations," the government said. The median estimate of six economists surveyed by Bloomberg was a 1.7 per cent decline in exports. The economists had also forecast a 2.1 per cent drop in imports. Exports to the rest of Asia fell 7.8 per cent in December from a year ago, with goods shipped to India declining 36 per cent for the biggest decrease followed by Vietnam at -16 per cent and China at -8.7 per cent. Exports to Germany declined 11 per cent, while those to the US fell 0.7 per cent. Meanwhile Hong Kong imports from Taiwan fell 30 per cent, while Korean imports dropped 25 per cent and India 24 per cent.