XN000022-1995-05-26 — Page 17

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15.

In the first four months of 1995, the value of total exports grew by 18% over the same period last year. Amongst this, the value of re-exports rose by 19%, while that of domestic exports increased by 9.9%. The value of imports showed an increase of 26%.

In the same period, a visible trade deficit of $56.9 billion, equivalent to 13% of the value of imports, was recorded. This compared with a deficit of $24.4 billion, equivalent to 6.8% of the value of imports, recorded in the first four months of 1994.

Commenting on the latest trade figures, a Government spokesman said amidst fluctuations in the early part of the year, the growth rate of domestic exports slowed down to 1.5% in April.

Nevertheless, for the first four months of 1995 taken together, the growth in domestic exports was still better than expected, at 9.9 % over the same period in 1994.

On the visible trade deficit recorded for the month of April, the spokesman noted that a fairly sizeable trade deficit also occurred in the same month last year.

As such, the deficit situation for the month was partly seasonal.

However, the widened trade deficit so far this year was attributable more significantly to firstly, a greater absorption of imports mostly for production and capacity enhancement, and secondly, the effect of import prices continuing to rise faster than export prices thereby giving a deterioration in the terms of trade for Hong Kong.

The greater absorption of material inputs for production and of machinery and equipment for capacity enhancement, as was embraced in retained imports rising by 32% in value terms in April over a year earlier, should help underpin overall economic growth in the coming months, the spokesman added.

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