MONDAY, SEPTEMBER 12, 1977
EXPORT PRICES WERE ON AVERAGE 4 PER CENT HIGHER, THE QUANTITY OF DOMESTIC EXPORTS WAS ONLY 3 PER CENT HIGHER, IN MARKED CONTRAST TO THE 30 PER CENT GROWTH IN THE QUANTITY OF DOMESTIC EXPORTS FOR 1976 OVER 1975.
THE VALUE OF DOMESTIC EXPORTS IN THE FIRST HALF OF THIS YEAR TO FIVE OUT OF HONG KONG'S SIX LARGEST MARKETS WAS LOWER THAN IN THE SAME PERIOD LAST YEAR WITH THE EXCEPTION OF THE UNITED STATES.
+THE SLOW DOWN IN THE GROWTH OF DOMESTIC EXPORTS IN THE FIRST HALF OF 1977 WAS ALMOST WHOLLY THE RESULT OF LOWER EXPORTS OF. CLOTHING AND TEXTILES PRODUCTS, BUT DOMESTIC EXPORTS OTHER THAN CLOTHING AND TEXTILES HAVE ALL RECORDED FAIRLY HIGH GROWTH RATES,+ ACCORDING TO THE REPORT.
PERFORMANCE OF DOMESTIC EXPORTS OF ELECTRONIC COMPONENTS AND WATCHES WAS OUTSTANDING WITH THE VALUE OF DOMESTIC EXPORTS IN THE FIRST HALF OF THE YEAR BEING RESPECTIVELY 46 PER CENT AND 34 PER CENT UP ON A YEAR AGO.
DIFFICULTIES WERE BEGINNING TO BE EXPERIENCED BY SECTORS MANUFACTURING AND EXPORTING CONSUMER GOODS BECAUSE OF SATURATION OF MARKETS IN THE CASE OF SEMI-DURABLES AND CHANGES IN CONSUMERS' TASTES IN RESPECT OF NON-DURABLE GOODS.
THE REPORT EMPHASIZES THE IMPORTANCE OF TECHNOLOGICAL BREAK-THROUGHS IN THE CREATION OF NEW WAVES OF DEMAND.
THE VALUE OF IMPORTS IN THE FIRST HALF OF 1977 WAS 14 PER CENT HIGHER THAN THAT IN THE FIRST HALF OF 1976, WITH LARGE INCREASES RECORDED IN IMPORTS OF CONSUMER GOODS AND CAPITAL GOODS.
THE REPORT SAYS THAT THE SLOW DOWN IN IMPORTS OF RAW MATERIALS WAS A REFLECTION OF EXPORT PERFORMANCE AND THE RAPID INCREASE IN IMPORTS OF CONSUMER GOODS AND CAPITAL GOODS WAS A REFLECTION OF STRONG DOMESTIC DEMAND.
THE REPORT INDICATES THAT IMPORT PRICES HAVE REMAINED VIRTUALLY CONSTANT THROUGHOUT THE FIRST HALF OF 1977 AFTER INCREASING STEADILY THROUGHOUT 1976. IT ADDS THAT +THE STABILITY OF IMPORT PRICES WAS ATTRIBUTABLE TO STABLE PRICES FOR FOOD FROM CHINA, AND DECLINING PRICES OF RAW MATERIALS FROM JAPAN AND THE UNITED STATES+. THIS COUNTER-BALANCED INCREASES IN PRICES OF IMPORTS OF CONSUMER GOODS, RAW MATERIALS AND CAPITAL GOODS FROM THE UNITED KINGDOM AND IN PRICES OF RAW MATERIALS FROM CHINA.
HOWEVER IT SAYS THAT AS EXPORT PRICES WERE SLIGHTLY LOWER THAN LAST YEAR, THE TERMS OF TRADE HAVE IN FACT DETERIORATED. ALSO, THE FASTER GROWTH IN IMPORTS RELATIVE TO EXPORTS HAS RESULTED IN A WIDENING OF THE VISIBLE TRADE DEFICIT TO HK$ 3,054 MILLION FOR THE FIRST HALF OF THE YEAR, NEARLY DOUBLE THE TRADE DEFICIT IN THE FIRST HALF OF LAST YEAR.
IN THE SECTION