TNAG-0621-FCO40-769-Budget-of-Hong-Kong-1977 — Page 116

G.F. 323

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8.

at the turn of the year coincided with general over supply of raw

materials; and it was only short tera limits in capacity that

transformed part of the excess downd for manufactured products

The situation was reversed towards the

into price increases.

second half of 1976. As consumer demand in Hong Kong's major

markets eased off, exorters had to stabilize prices to remain

competitive. Furthermore, the general increase in industrial

production world-wide has led to a scarcity of raw materials and

semi-manufactures which explains the increase in their prices in

the latter half of 1976.

Domestic exports to main markets

1:7

A

Table 5 gives the value of domestic ex orts to Hong Kong's

main markets. The United States remained the most important market

for Hong Kong roducts, taking roughly one-third of total domestic

exports. Between 1973 and 1976, the value of domestic exorts to the

United States grew at an average annual rate of 18%, the drop of 1%

between 1974 and 1975 being more than offset by the 53% increase

between 1975 and 1976. Although the German market grew comparatively

slowly between 1975 and 1976, the average annual rate of increase in

the value of long Kong's domestic exports to Germany between 1973

and 1976 reached 28%. The growth of the value of domestic exports to

the United Kingdom was less dramatic. After decreasing by 2,1 in

1974 on 1973, the value of domestic exports to the United Kingdom

remained at the same level in 1975 but increased by a comparatively

modest 18% in 1976. So, Germany in 1975 replaced the United Kingdom

as the second largest market for Hong Kong's domestic exports.

[Table 5, Diagram 2 J

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