THE ECONOMY
The fall in total exports in 1998 was mainly attributable to markets in East Asia, with sharp declines of 19 per cent in real terms for Singapore and 15 per cent for Japan. There was also a decline of 4 per cent in total exports to the Mainland. On the other hand, total exports to the USA and the UK still recorded some increases for the year as a whole, by 1 per cent and 4 per cent respectively in real terms. Yet total exports to Germany decreased by 4 per cent.
In the first three quarters of 1998, seaborne outward transshipment fell by 12 per cent in tonnage terms over a year earlier, in contrast to a 6 per cent increase in 1997. Analysed by market, the slow-down in transshipment was most significant for markets in East Asia, as intra-regional trade plummeted upon the impact of the regional financial turmoil. Of these markets, transshipment to Japan and Singapore in the first three quarters of 1998 plunged by 36 per cent and 26 per cent respectively in tonnage terms over a year earlier, while transshipment to the Mainland was 16 per cent lower. Transshipment to Taiwan eased visibly during the year, with an increase of only 1 per cent for the first three quarters taken together. On the other hand, transshipment to Germany and the UK still recorded robust growth, by 9 per cent and 7 per cent respectively for the first three quarters combined.
Imports fell by 7 per cent in real terms in 1998, sharply reversed from the 7 per cent increase in 1997. The setback was mainly caused by the downturn in the local economy, leading to a marked decline in imports retained for local use, by 14 per cent in real terms in 1998. Analysed by source of Hong Kong's imports, the Mainland continued to be the largest supplier, accounting for 41 per cent of the total value in 1998. Other major suppliers included Japan (with a share of 13 per cent), the USA (7 per cent), and Taiwan (7 per cent).
Chart 7
Percent
50
Hong Kong's visible trade (year-on-year rate of change in real terms)
40
30
Re-exports
Imports
20
10
0
-10
1988
1989
Total exports
Domestic exports
1990 1991 1992
1993 1994
1995
1996 1997
1998
49
Export performance slackened considerably in 1998, upon the reduced import demand in the region.
50