2.7 The re
was a
visible trade deficit in
HK$1,929
million
1984 of
million).
However, trade in
(approximately £192
invisibles makes an important
contribution to Hong Kong's balance
of
payments.
In
1983 Hong Kong's surplus on invisibles was estimated at
roughly HK$11,841 million over half of the visible
trade deficit.
-
1985
8.
an
Although the growth in domestic exports during
1985 has been lower than forecast in the budget, total
exports during the period January to June 1985 have
risen, reflecting the continued expansion of the
re-export trade. To a
certain extent the fall in
domestic exports can be attributed in part to
inevitable levelling-off following two years of
remarkable growth. But, a decline during the year in
demand from Hong Kong's major markets, notably the
United States, and the appreciation of the Hong Kong
dollar, through its link with the US dollar, against
other currencies which reduced
the competitiveness of
Hong Kong's exports in the world's markets also
contributed.
9.
programme.
Whilst domestic exports to Hong Kong's former
traditional markets have declined in the first half of
the year, those to China grew by
by 70% reflecting the
adoption by the PRC of mo re liberal economic policies
and its demand for imports in it modernisation
At the s ame time, China has become the
largest market of re-exports through Hong Kong and the
territory has re-emerged as the entrepôt for China.
For the first time since the early 1950s, Hong Kong saw
a trade surplus with China in the first six
months of this year. However, the present high level
of domestic and re-exports to China could be affected