XN000022-1987-01-24 — Page 3

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SATURDAY, JANUARY 24, 1987

THE VALUE OF IMPORTS GREW BY 23.8 PER CENT OR $5 288 MILLION OVER DECEMBER 1985 TO $27 468 MILLION.

AS THE GREW IN THE VALUE OF TOTAL EXPORTS WAS FASTER THAN THAT OF IMPORTS, A VISIBLE TRADE SURPLUS EQUIVALENT TO 1.9 PER CENT OF THE VALUE OF IMPORTS WAS RECORDED IN DECEMBER 1986, COMPARED WITH A VISIBLE TRADE GAP (THAT IS, THE PROPORTION OF THE VALUE OF IMPORTS NOT COVERED BY THE VALUE OF TOTAL EXPORTS) OF 1.8 PER CENT RECORDED IN DECEMBER 1985.

FOR 1986 AS A WHOLE, THE VALUE OF TOTAL EXPORTS WAS $276 526 MILLION, MADE UP OF DOMESTIC EXPORTS OF $153 980 MILLION AND RE-EXPORTS OF $122 546 MILLION.

COMPARED WITH 1985, THE VALUE OF TOTAL EXPORTS GREW BY $41 374 MILLION OR 17.6 PER CENT, OF DOMESTIC EXPORTS BY $24 098 MILLION OR 18.6 PER CENT, AND OF RE-EXPORTS BY $17 276 MILLION OR 16.4 PER CENT. OVER THIS PERIOD, THE VALUE OF IMPORTS GREW BY $44 535 MILLION OR 19.2 PER CENT, TO $275 955 MILLION.

AS THE GROWTH RATE OF THE VALUE OF IMPORTS WAS FASTER THAN THAT OF TOTAL EXPORTS, THE VISIBLE TRADE ACCOUNT RECORDED A SURPLUS OF $571 MILLION (EQUIVALENT TO 0.2 PER CENT OF THE VALUE OF IMPORTS) IN 1986, WHICH WAS SMALLER THAN THE SURPLUS OF $3 732 MILLION (EQUIVALENT TO 1.6 PER CENT OF THE VALUE OF IMPORTS) RECORDED IN 1985.

COMMENTING ON THESE FIGURES, A GOVERNMENT SECRETARIAT SPOKESMAN SAID THAT DOMESTIC EXPORTS HAVE STAGED A STRONG RECOVERY SINCE MARCH 1986, WITH THEIR YEAR-ON-YEAR GROWTH RATE IN VALUE TERMS ACCELERATING FROM 1 PER CENT IN THE FIRST QUARTER TO 30 PER CENT IN THE FOURTH QUARTER.

THIS WAS PARTLY ATTRIBUTABLE TO IMPROVED DEMAND GENERALLY FOR IMPORTS IN MANY OF HONG KONG'S MAJOR OVERSEAS MARKETS.

ANOTHER CONTRIBUTORY FACTOR WAS THE DEPRECIATION OF THE HONG KONG DOLLAR, IN LINE WITH THAT OF THE U.S. DOLLAR UNDER THE LINKED EXCHANGE RATE SYSTEM, AGAINST MOST MAJOR CURRENCIES, WHICH HAS ENHANCED THE EXTERNAL COMPETITIVENESS OF HONG KONG'S PRODUCES.

HE ADDED THAT THE VALUE OF RE-EXPORTS CONTINUED TO INCREASE SHARPLY IN DECEMBER. THIS REFLECTED, IN PART, CHINA'S EFFORTS IN PROMOTING ITS EXPORTS, RESULTING IN MORE CHINESE GOODS BEING CHANELLED THROUGH HONG KONG TO OVERSEAS MARKETS.

THE FOLLOWING TABLE PRESENTS THE PROVISIONAL MERCHANDISE TRADE FIGURES FOR DECEMBER 1986.

MERCHANDISE: