XN000022-1995-04-28 — Page 13

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External trade figures for March

Both re-exports and imports continued to increase substantially in March. Domestic exports also showed a notable increase. These are shown in the external trade figures for March released today (Friday) by the Census and Statistics Department.

The value of total exports (comprising re-exports and domestic exports) increased by $17.5 billion or 20% to $104.6 billion in March. Within total exports, the value of re-exports, at $86.9 billion in March, was $15.8 billion or 22% higher than a year earlier. The value of domestic exports increased by $1.7 billion or 11% over a year earlier to $17.6 billion in March. Meanwhile, the value of imports increased by $25.4 billion or 26% to $121.6 billion.

As the value of total exports in March was smaller than that of total imports, a visible trade deficit of $17.1 billion, equivalent to 14.0% of the value of imports, was recorded. This compared with a deficit of $9.2 billion, equivalent to 9.5% of the value of imports, in March last year.

In the first quarter 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 22%, while that of domestic exports increased by 13%. The value of imports showed an increase of 27%. In the same period, a visible trade deficit of $35.6 billion, equivalent to 11% of the value of imports, was recorded. This compared with a deficit of $13.9 billion, equivalent to 5.4% of the value of imports, recorded in the first quarter of last year.

A Government spokesman commented that the good export performance in the first two months this year was sustained well into March. Of particular note was the significant growth in domestic exports for three consecutive months.

The spokesman however observed that the visible trade deficit widened in recent months. This was partly due to a further deterioration in the terms of trade, as the prices of imports continued to rise faster than those of exports. Also, it was due to a marked increase in retained imports, by 37% in value terms in the first quarter over a year earlier. The surge was prompted by the increase in domestic exports giving rise to a pick-up in industrial activity, as well as a sustained strong investment in capital equipment.

The table annexed presents the external trade figures in March.

A more detailed analysis of Hong Kong's external trade for March, by commodity and country, will be released in mid-May.