Chart 6
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LO
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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
Q1 Q2 Q3 Q4 01 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013
I
2014
2015
2016
Q4 Q1 Q2 Q3 Q4
2017 I
Merchandise exports grew markedly in 2017.
Imports of services grew steadily by 1.8 per cent in real terms in 2017, similar to the 2.1 per cent growth in 2016 (chart 7). Within this, imports of travel services were supported by residents' keen travel interest, given the favourable job and income conditions as well as positive wealth effects arising from increasing asset prices. Imports of transport services reverted to moderate annual growth amid the pick-up in regional trade and cargo flows. The generally sanguine global economic environment also rendered slightly faster growth impetus to imports of business and other services. On the other hand, imports of manufacturing services continued their downtrend in 2017.
Compiled based on the change of ownership principle, the goods deficit widened somewhat in 2017, as imports of goods under firm domestic demand slightly outpaced exports of goods. Nonetheless, with the services surplus more than offsetting the goods deficit, the combined goods and services account registered a surplus of $21 billion in 2017, equivalent to 0.4 per cent of total import value, smaller than the $57 billion surplus in 2016.
Domestic Demand
Domestic demand was robust in 2017. Private consumption expenditure displayed much strength, expanding 5.4 per cent in real terms, notably faster than its 1.9 per cent growth in 2016 (chart 8). Such visible growth was underpinned by sanguine consumer sentiment, thanks to the favourable employment and income conditions as well as a bigger boost from wealth effects alongside buoyant asset markets. Government consumption expenditure grew steadily by 3.4 per cent in real terms in 2017, broadly similar to its 3.3 per cent growth in 2016.
Overall investment spending in terms of gross domestic fixed capital formation resumed moderate growth of 4.2 per cent in real terms in 2017 despite some volatility in individual quarters, after dipping 0.1 per cent in 2016. In particular, overall building and construction grew solidly by 3.0 per cent in real terms in 2017. Within this, private-sector activities saw further
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