2
Foreign Trade
The main data are set out in the annexed tables. In value
terms (HK$), domestic exports, retained imports and the (structural)
trade deficit were all some 26-28% higher than in 1972. But at
HK$3 md. the deficit was no wider than in 1971; and in real terms it
hayrewic
must of course be seen as appreciably lower
h
The 9-month figures shown
at Table II suggests, however, that most of the increase in trade values
was due to price rises.
Thus the great bulk of last year's inflation in the Colony
The crucial
looks to have been imported rather than home-grown.
importance of foreign trade is shown by Government estimates that in
1972 imports accounted for 70-75% of private consumption expenditure on
goods (both durable and non-durable) and 90% of private investment
expenditure (excluding land and building work).
Likewise manufacturers
in 1970 probably exported 80% of their final output - or as much as 86%
if building materials, shipbuilding, tailoring and printing are excluded
Consequently imported inflation very quickly shows up in
increased consumer and export prices:
Percentage Changes
1972 against
1971
1973 against
1972
(12 months (9 months
data)
data)
100%
17%
27%
Share in Total
Imports Jan.-Sept.1973
Import Prices:
All goods
Foodstuffs
Consumer goods
+ 4%
+ 15%
+ 5%
+ 23%
+ 2%
+ 13%
41%
Raw Materials
+ 4%
+ 15%
Weights in Index
Consumer Prices:
100
All goods
+ 6%
+ 20%
48
Foodstuffs
+ 7%
+ 28%
100% of Exports
Export Prices (All Goods)*
+ 7%
+16%
*Price changes broken down by export commodity groups 1973 against
1972 (9 months) are at Annex Table II.