Chart 6
15
10
5
5
-10
3
The Economy
Per cent
Hong Kong's Goods Trade
(year-on-year rate of change in volume terms)
Total exports of goods
Imports of goods
-15
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012
2013 1
2014
2015
2016
Merchandise exports showed successive improvements after a setback in the first quarter of 2016.
Exports of services slackened and fell 3.1 per cent in real terms in 2016, posting the first annual decline in real terms since 1998, dragged down mainly by a notable fall-off in inbound tourism. Yet, as the global economic environment turned more benign and visitor arrivals bottomed out, exports of services generally improved during the year, reverting to growth in the fourth quarter. Among the key components, the fall in exports of travel services posed a significant drag, being affected by subpar regional growth, a strong currency and the effect of the 'one trip per week' Individual Visit Endorsements. Exports of financial services and of business and other services were likewise sluggish, though these fared better towards the year end. Exports of transport services were a bright spot, benefiting from improved regional trade flows during the year.
Imports of services grew modestly by 1.9 per cent in real terms in 2016, much decelerated from the 5.1 per cent growth in 2015 (chart 7). Performance varied notably among different components. Imports of travel services held firm all through, underpinned by the keen interest of local residents in overseas travel amid resilient job and income conditions. In contrast, imports of transport services were weak. Imports of manufacturing services slackened, recording a decline. Imports of business and other services also saw weaker growth amid the bumpy global economic recovery.
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