The Economy | 55
Imports of goods expanded markedly, by 18.6 per cent in volume terms in 2010 after a 9.4 per cent decline in 2009, in tandem with the strong rebound in re-export trade and the strengthening of local demand. Retained imports, referring to imports. for domestic uses, went up by 19.7 per cent in volume terms for 2010 as a whole, following the 3.8 per cent decline in 2009. There was a strong year-on-year expansion of 42.1 per cent in the first half of the year, followed by a further increase of 3.8 per cent in the second half of the year as the effect of a much higher base of comparison set in.
Analysed by end-use categories, retained imports of raw materials and semi- manufactures saw the fastest growth in 2010, at 31.3 per cent in volume terms, albeit reversing to decline in the second half of 2010. Retained imports of consumer goods also performed strongly, up 22.5 per cent amid sanguine consumer sentiments. Retained imports of capital goods surged by 15.5 per cent, in tandem with robust investment and economic activities. Retained imports of fuels and foodstuffs also grew notably by 13.9 per cent and 11.6 per cent respectively in volume terms.
Exports of services sustained strong growth throughout 2010, leaping by 15 per cent in real terms for the year as a whole, following the 0.3 per cent growth in 2009. Despite the higher base of comparison, exports of services still grew at a rapid pace in the fourth quarter of 2010. Among the major service components, exports of travel services showed the strongest performance, thanks to the sizeable influx of visitors from the regional as well as long-haul markets. Exports of trade-related services, reflecting mainly offshore trade, grew sharply in 2010, benefiting from the improved trading environment for Asia. Exports of transportation services likewise surged along with the expansion of trade flows and flourishing passenger flows. Exports of financial and business services were also strong, on the back of intensive fund-raising activities in the financial market and the brisk expansion of business activities.
Imports of services likewise were robust, up 10.9 per cent in real terms in 2010, in contrast to the 4.9 per cent contraction in 2009. Imports of travel services grew solidly along with improving economic conditions. Imports of trade-related services and transportation services both thrived on the strong rebound in offshore trade amid vibrant intra-regional trade flows. Imports of financial and business services also picked up markedly to a double-digit increase in 2010 (Chart 9).
With strong import intake amid the robust upturn in the Hong Kong economy, the visible trade deficit widened in 2010. Nevertheless, this was more than offset by the gain in invisible trade surplus, thanks to vibrant service exports across a broad front. As a result, the combined visible and invisible trade balance in 2010 recorded a surplus of $104.6 billion, equivalent to 2.8 per cent of the total value of imports of goods and services. This compared with the corresponding figures of $121.3 billion and 4 per cent in 2009. The favourable trade balance continued to underline Hong Kong's strong external competitiveness.