BUSAAF
4. Very rapid growth in 1986 and 1987 (11% and 14%) has been
followed by a sharp slowdown. Growth in 1988 was 7.5% and only 2.5% in 1989. The slowdown is partly due to capacity constraints, causing labour shortages and inflationary pressures. But external factors also played a part. In particular the sharp slow down of the chinese economy, much of whose trade passes through Hong Kong, has had a significant knock-on effect. A modest recovery is expected in 1990 with growth forecast at 3%. Inflation, which had been running at over 10% in 1989, should ease slightly.
5.
External trade is of the greatest importance to Hong Kong. In 1990 growth, both imports and exports, slowed rapidly. Domestic exports did not grow at all in real terms compared to 9% in 1988. Re-exports, which now account for more than half of total exports, slowed from growth of 46% in 1988 to 19%. However, as the growth in imports is also slowing, the overall trade account remains in
roughly in balance.
6. Hong Kong is almost totally lacking in natural resources and, relative to its population, is very short of usable land. The manufacturing sector is therefore completely dependent on imported raw materials and the bulk of Hong Kong's requirements of foodstuffs and consumer goods is also imported.
The value of Hong Kong's exports of goods in 1989, including re-exports was HK$570.5 billion (approx £44.6 billion), a nominal increase of 15.4%. The principal domestic exports were:
1.
Textiles & Clothing
Watches/Clocks
Electronic components
Metal manufactures
39.6%
7.2%
5.0%
2.7%
The principal markets were:
United States
32%
China
19%
FRG
UK
78%
7%