2
FRIDAY, AUGUST 25, 1989
DOMESTIC
PERFORMANCE.
EXPORTS TO THE VARIOUS MAJOR MARKETS SHOWED A MIXED
DOMESTIC EXPORTS TO CHINA AND JAPAN CONTINUED TO GROW RAPIDLY IN THE FIRST HALF OF THIS YEAR. BY ABOUT 27 PER CENT AND 26 PER CENT RESPECTIVELY IN REAL TERMS OVER A YEAR EARLIER, WHILE THOSE TO THE UNITED KINGDOM ROSE BY ONLY ABOUT THREE PER CENT.
ON THE OTHER HAND, DOMESTIC EXPORTS TO THE UNITED STATES FELL BY ABOUT THREE PER CENT, AND THOSE TO THE FEDERAL REPUBLIC OF GERMANY BY ABOUT FIVE PER CENT.
THUS. ALTHOUGH THE UNITED STATES REMAINED THE LARGEST MARKET FOR HÔNG KONG'S DOMESTIC EXPORTS, ITS SHARE FELL FROM 37 PER CENT IN 1987 TO 33 PER CENT IN 1988 AND TO 31 PER CENT IN THE FIRST HALF OF 1989.
RE-EXPORTS ROSE BY ABOUT 29 PER CENT IN REAL TERMS IN THE FIRST HALF OF 1989 OVER THE FIRST HALF OF 1988. ALTHOUGH THIS GROWTH RATE WAS STILL SUBSTANTIAL. THERE WAS A MARKED DECELERATION FROM THE 46 PER CENT INCREASE RECORDED FOR 1988 AS A WHOLE.
THE CONTINUED GROWTH IN RE-EXPORTS WAS ATTRIBUTABLE NOT ONLY TO THE INCREASE IN ENTREPOT TRADE WITH CHINA AND WITH THE ASIA-PACIFIC' REGION GENERALLY, BUT ALSO TO THE EXPANSION IN OUTWARD PROCESSING ACTIVITIES IN CHINA.
OVER THE SAME PERIOD. IMPORTS GREW BY ABOUT 20 PER RETAINED IMPORTS BY ABOUT 13 PER CENT IN REAL TERMS.
CENT. AND
A VISIBLE TRADE DEFICIT OF $13,470 MILLION, EQUIVALENT TO FIVE PER CENT OF THE TOTAL IMPORTS, WAS RECORDED IN THE FIRST HALF OF 1989.
THIS COMPARES WITH A DEFICIT OF $8,752 MILLION, EQUIVALENT FOUR PER CENT OF IMPORTS, RECORDED IN THE SAME PERIOD IN 1988.
TO
WITHIN THE LOCAL ECONOMY, THE GROWTH IN CONSUMPTION SLACKENED DURING THE FIRST HALF OF THIS YEAR.
DEMAND
AS AN INDICATION, THE YEAR-ON-YEAR GROWTH RATE OF RETAINED IMPORTS OF FOODSTUFFS WAS SLOWER IN THE SECOND QUARTER THAN IN THE FIRST QUARTER, WHILE THE VOLUME OF RETAINED IMPORTS OF CONSUMER FELL IN THE SECOND QUARTER OVER A YEAR EARLIER.
GOODS
RATHER SMALL INCREASES WERE RECORDED IN THE VOLUME OF SALES IN RECENT MONTHS WHEN COMPARED WITH THE SAME MONTHS LAST
RETAIL
INVESTMENT DEMAND ALSO EASED IN THE FIRST HALF OF THE WITH RETAINED IMPORTS OF CAPITAL GOODS, PARTICULARLY MACHINERY MANUFACTURING USE, SHOWING SLOWER INCREASES.
YEAR..
YEAR.
FOR
ON INFLATION, THE YEAR-ON-YEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX (A) ROSE FROM 9.8 PER CENT IN THE FIRST QUARTER TO 10.4 PER CENT IN THE SECOND QUARTER. THIS COMPARES WITH AN AVERAGE INCREASE OF 7.5 PER CENT FOR 1988 AS A WHOLE.
/THE CORRESPONDING