XN000022-1979-10-24 — Page 2

1

WEDNESDAY, OCTOBER 24, 1979

TRADE GAP CONTINUES TO NARROW

******

THE VALUE OF HONG KONG'S TOTAL EXPORTS LAST MONTH (SEPTEMBER) WAS $7 051 MILLION AND IMPORTS WERE WORTH $7 648 MILLION, GIVING A VISIBLE TRADE DEFICIT OF $597 MILLION FOR THE MONTH, ACCORDING TO THE PROVISIONAL TRADE FIGURES RELEASED BY THE CENSUS AND STATISTICS DEPARTMENT TODAY (WEDNESDAY).

TOTAL EXPORTS ARE MADE UP OF DOMESTIC EXPORTS, WHICH WERE VALUED AT $5 316 MILLION LAST MONTH, AND RE-EXPORTS' WORTH $1 734 MILLION.

COMPARED WITH THE SAME MONTH LAST YEAR, THE VALUE OF TOTAL EXPORTS ROSE BY 43 PER CENT, DOMESTIC EXPORTS BY 42 PER CENT, RE-EXPORTS BY 45 PER CENT AND IMPORTS BY 39 PER CENT.

DURING THE FIRST NINE MONTHS OF THIS YEAR COMPARED WITH THE SAME PERIOD LAST YEAR, THERE WAS A GROWTH OF 38 PER CENT IN THE VALUE OF DOMESTIC EXPORTS, 54 PER CENT IN RE-EXPORTS, 42 PER CENT IN TOTAL EXPORTS AND 38 PER CENT IN IMPORTS.

COMMENTING ON THESE FIGURES, A GOVERNMENT SPOKESMAN SAID THAT LAST MONTH WAS THE FIFTH CONSECUTIVE MONTH WHEN THE GROWTH RATE OF TOTAL EXPORTS WAS HIGHER THAN THAT OF

IMPORTS.

+THE TRADE FIGURES FOR LAST MONTH CONFIRM THAT THE VISIBLE TRADE GAP, THAT IS THE PROPORTION OF THE VALUE OF IMPORTS WHICH IS NOT PAID FOR BY TOTAL EXPORT EARNINGS, IS STILL ON A NARROWING TREND, HE SAID.

FOR THE FIRST NINE MONTHS OF THIS YEAR, THE TRADE GAP WAS 11.5 PER CENT COMPARED WITH 13.6 PER CENT FOR THE SAME PERIOD LAST YEAR.

+THE FACT THAT THE DEFICIT IN ABSOLUTE TERMS IS SLIGHTLY LARGER THAN IT WAS THIS TIME LAST YEAR, IS, OF COURSE, THE RESULT OF THE SUBSTANTIAL INCREASE IN THE VALUE OF THE TRADE INVOLVED, + HE SAID.

HE POINTED OUT THAT THE GROWTH RATE OF IMPORTS IN RECENT MONTHS, APART FROM BEING LESS THAN THE GROWTH RATE OF TOTAL EXPORTS, WAS CHARACTERISED BY THE PRESENCE OF UNUSUALLY LARGE SHIPMENTS OF CAPITAL GOODS.

+SO THE MORE DETAILED STATISTICS TO BE AVAILABLE SHORTLY ARE LIKELY TO SHOW THAT THE GROWTH RATE OF IMPORTS OF CONSUMER GOODS HAS CONTINUED TO SLOW DOWN,+ HE SAID.

/THE FOLLOWING