XN000022-1997-01-30 — Page 14

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Within total exports, the value of re-exports increased by 3.5% to $98.4 billion, but the value of domestic exports decreased by 9.6% to $18.2 billion.

The value of imports increased by 2.9% in December 1996 over a year earlier to $131.4 billion.

As the value of total exports in December 1996 was smaller than that of total imports, a visible trade deficit of $14.7 billion, equivalent to 11% of the value of imports, was recorded. This was slightly greater than the corresponding deficit of $12.4 billion, equivalent to 9.7% of the value of imports, in December 1995.

For 1996 as a whole, the value of total exports grew by 4%. Within this total, the value of re-exports rose by 6.6%, while that of domestic exports decreased by 8.4%. The value of imports showed an increase of 3%.

A visible trade deficit of $137.7 billion, equivalent to 9% of the value of imports, was recorded in 1996. This was smaller than the deficit of $147 billion, equivalent to 9.9% of the value of imports, recorded in 1995.

A government spokesman commented that export growth was considerably slower, along with greater volatility, in 1996 than in 1995.

In 1996, the slow-down in import demand in some of the major markets particularly the United States and China, the global oversupply of electronic products, the strength of the US dollar, and the on-going structural shift in the composition of Hong Kong's exports vis-à-vis offshore trading, all combined to restrain export growth.

Nevertheless, retained imports including those of capital goods and of raw materials and semi-manufactures recorded some increases in recent months.

This might suggest a possible pick-up in production for export in the months to come. Completion of the earlier inventory adjustment process in the local economy could have also contributed to a larger intake of imports.

A more detailed analysis of Hong Kong's external trade for December 1996, by commodity and country, will be released in mid-February.