This revision is made in face of a strong growth of about 11% in real terms in domestic exports in the first quarter.
Also relevant are the uptrend in orders-on-hand as well as the marked increase in retained imports of raw materials and semi-manufactures in recent months.
The rise in demand in the major markets, as well as the boost to competitiveness due to the depreciation of the Hong Kong dollar along with the US dollar in recent quarters, should continue to underpin Hong Kong's overall export performance for the rest of 1995.
Taking re-exports and domestic exports together, the forecast growth rate in real terms of total exports in 1995 is raised from 13.4% to 13.9%.
The forecast growth rate in real terms of imports of goods is kept virtually unchanged at 13.3%.
Given a marked increase of about 22% in real terms in the first quarter, the current forecast suggests a gradual deceleration in the coming quarters.
The substantial in-take in the earlier periods and the significantly higher import prices since the early part of last year should act to dampen demand for imports in due
course.
Exports of services are forecast to grow by 9%, same as the earlier forecast.
There should have been a notable growth in exports of services in the first quarter, having regard to the rapid increases in both airborne and seaborne cargo, the continued surge in transhipment, and a notable increase in the number of incoming visitors.
Further considerable growth in exports of services can be expected in the coming months, with offshore trading and the provision of various services supporting exports of goods continuing to render the main impetus.
Meanwhile, having regard to the growth in local demand and in the various services related to imports of goods, imports of services are forecast to grow by 7.5%, also unchanged from the earlier forecast.
In the domestic sector, the forecast growth rate in real terms of private consumption expenditure in 1995 is revised downwards to 5%, from the earlier forecast of 6%.