XN000022-1992-08-28 — Page 3

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FRIDAY, AUGUST 28, 1992

RE-

RE-EXPORTS REMAINED ROBUST, GROWING BY ABOUT 31% IN REAL TERMS IN THE FIRST HALF OF 1992 OVER THE SAME PERIOD IN 1991. AS RE-EXPORTS CONTINUED TO GROW FASTER THAN DOMESTIC EXPORTS, THE SHARE OF EXPORTS IN THE VALUE OF TOTAL EXPORTS INCREASED FURTHER, FROM 70% FOR

1991 AS A WHOLE TO 74% IN THE FIRST HALF OF 1992.

THERE WAS A SUSTAINED MARKED INCREASE IN RE-EXPORTS INVOLVING CHINA IN BOTH DIRECTIONS, REFLECTING BOTH A GREATER ABSORPTION OF IMPORTS BY CHINA FOR ITS OWN USE AND A FURTHER EXPANSION IN OUTWARD PROCESSING ACTIVITIES ACROSS THE BORDER.

CHINA REMAINED THE LARGEST MARKET FOR AS WELL AS THE LARGEST SOURCE OF HONG KONG'S RE-EXPORTS, ACCOUNTING FOR 31% AND 58% RESPECTIVELY OF THE TOTAL VALUE OF RE-EXPORTS IN THE FIRST HALF OF

1992.

SUPPORTED BY THE CONTINUED SURGE IN RE-EXPORTS AND THE BUOYANT DOMESTIC DEMAND, IMPORTS RECORDED A FURTHER MARKED INCREASE, BY ABOUT 23% IN REAL TERMS IN THE FIRST HALF OF 1992 OVER A YEAR EARLIER.

RETAINED IMPORTS ALSO SHOWED A NOTABLE INCREASE, BY ABOUT 14% IN REAL TERMS. AMONG THE VARIOUS END-USE CATEGORIES, RETAINED IMPORTS OF FUELS RECORDED THE FASTEST GROWTH, FOLLOWED BY THOSE OF CAPITAL GOODS, CONSUMER GOODS, FOODSTUFFS, AND RAW MATERIALS AND SEMI-

MANUFACTURES.

A VISIBLE TRADE DEFICIT OF $26,473 MILLION WAS RECORDED IN THE FIRST HALF OF 1992, EQUIVALENT TO 6% OF THE VALUE OF IMPORTS. THE CORRESPONDING DEFICIT IN THE SAME PERIOD LAST YEAR WAS $21,183 MILLION, ALSO EQUIVALENT ΤΟ 6% OF THE VALUE OF IMPORTS. THE RELATIVELY HIGHER TRADE DEFICIT IN THE FIRST HALF OF THE YEAR WAS PARTLY ATTRIBUTABLE TO SEASONAL FACTORS.

ACCORDING TO THE PRELIMINARY ESTIMATE OF QUARTERLY GDP IN CONSTANT PRICE TERMS, PRIVATE CONSUMPTION EXPENDITURE, AS THE LARGEST COMPONENT OF DOMESTIC DEMAND, GREW BY 9% IN THE FIRST QUARTER OF 1992 OVER A YEAR EARLIER, FOLLOWING A SIMILAR INCREASE IN THE PRECEDING QUARTER. CONSUMPTION OF DURABLE GOODS SHOWED A PARTICULARLY NOTABLE INCREASE.

AS REGARDS GOVERNMENT CONSUMPTION EXPENDITURE, THE GROWTH RATE IN NATIONAL ACCOUNTS TERMS WAS 7% IN THE FIRST QUARTER OF 1992 OVER A YEAR EARLIER, AFTER A 6% INCREASE IN THE PRECEDING QUARTER.

LOCAL INVESTMENT, MEASURED IN TERMS OF GROSS DOMESTIC FIXED CAPITAL FORMATION, GREW BY 5% IN THE FIRST QUARTER OF 1992 OVER A YEAR EARLIER, FOLLOWING AN INCREASE OF 8% IN THE PRECEDING QUARTER,

OF THE MAIN COMPONENTS, EXPENDITURE ON MACHINERY AND EQUIPMENT RECORDED A FURTHER SIGNIFICANT GROWTH OF 10% IN THE FIRST QUARTER, HAVING SURGED BY 20% IN THE PRECEDINO QUARTER. ON THE OTHER HAND, EXPENDITURE ON BUILDING AND CONSTRUCTION CONTINUED TO FALL, BY 3% IN THE FIRST QUARTER, LARGELY DUE TO THE WINDING DOWN OF SOME PROJECTS SINCE THE LATTER PART OF LAST YEAR.

LARGE

/CONSUMER DEMAND

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