TRADE AND INDUSTRY
year of 1999, Hong Kong's total trade decreased by 1.3 per cent over the previous year. Domestic exports fell by 9.5 per cent to $170.6 billion, while that of re-exports increased by 1.7 per cent to $1,178.4 billion. Imports declined by 2.5 per cent to $1,392.7 billion.
In 1998, Hong Kong was the world's ninth largest trading entity in terms of value of merchandise trade. In 1999, it recorded a trade deficit of $43.7 billion. This was much smaller than the corresponding deficit of $81.4 billion in 1998.
Its largest trading partner is the Mainland, followed by the United States of America (USA) and Japan. The Appendices provide summary statistics of external trade.
Imports
Consumer goods, at $508.4 billion in 1999, constituted the largest share of total imports. This was followed by raw materials and semi-manufactures ($471.9 billion) and capital goods, foodstuffs and fuels ($412.5 billion).
The Mainland, Japan and Taiwan were the main suppliers of Hong Kong's imports in 1999, accounting for 43.6 per cent, 11.7 per cent and 7.2 per cent of the total imports, respectively.
Domestic Exports
Clothing continued to be the largest component of domestic exports, valued at $74.3 billion or 43.5 per cent of the total in 1999. At $23.8 billion, electrical machinery, apparatus and appliances came second.
In 1999, the USA, the Mainland and the United Kingdom were Hong Kong's largest markets, absorbing 30.1 per cent, 29.6 per cent and 6.1 per cent of total domestic exports, respectively.
Re-exports
Principal commodities re-exported included electrical machinery, apparatus and appliances ($156.5 billion or 13.3 per cent of the total) and telecommunications and sound recording and reproducing apparatus and equipment ($114.3 billion or 9.7 per cent of the total). The Mainland, Japan and Taiwan were the main origins of the re- exports, while the Mainland, the USA and Japan were the main destinations.
The Manufacturing Sector
Restructuring of the manufacturing sector was reflected by the drop in contribution of the sector to Gross Domestic Product from 18 per cent in 1990 to 6 per cent in 1998. In spite of the structural change, the manufacturing sector remained an important sector of the economy. It was Hong Kong's fourth-largest employer, employing 244 532 persons (10 per cent of the total employment) in 1999. Mechanisation, automation and relocation of assembly-type operations to the Mainland have accelerated the development of more knowledge-based and higher value-added manufacturing.
Increasing technological application and innovation in manufacturing industries result in more specialisation and distribution of processes on a global scale. As Hong
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