XN000022-1995-03-28 — Page 26

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The value of domestic exports increased by $13 billion or 10% over a year earlier to $14.8 billion in February Meanwhile, the value of imports increased by $20.4 billion or 26% to $99 7 billion.

As the value of total exports in February 1995 was smaller than that of total imports, a visible trade deficit of $14 9 billion. equivalent to 15.0% of the value of imports, was recorded. This compared with a deficit of $6.5 billion, equivalent to 8.2% of the value of imports, in February 1994

In the first two months of 1995, the value of total exports grew by 20% over the same period last year. Amongst this, the value of re-exports rose by 21%, while that of domestic exports increased by 14%. The value of imports showed an increase of 28%.

In the same period, a visible trade deficit of $18.5 billion, equivalent to 9.1% of the value of imports, was recorded.

This compared with a deficit of $4.7 billion. equivalent to 3.0% of the value of imports, recorded in the first two months of 1994

A Government spokesman said the strong export performance in the first two months of 1995 was encouraging. Of particular note was the continued significant growth in domestic exports, which until fairly recently still recorded declines.

The spokesman added that the larger visible trade deficit recorded so far this year was partly because of a further deterioration in the terms of trade, as the prices of imports continued to rise faster than those of exports in recent months.

Another important contributory factor was the marked increase in retained imports, by 40% in value terms in January and February combined over a year earlier.

The strong absorption of imports for local use was related to the pick-up in industrial activity along with a better export performance, as well as the sustained domestic demand particularly in regard to investment in capital goods.

A detailed analysis of Hong Kong's external trade for February 1995, by commodity and country, will be released in mid-April.