TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 235

omestic exports to main markets

2.3

The value of domestic exports to the United States, at $17,465 million in the first half of 1983, was 25% higher

than in the corresponding period of 1982.

On the basis of

trade indexes available up to May 1983, the price increase was

estimated at 8%, implying a growth rate of about 16% in real

terms. This latter growth rate was made up of year-on-year growth rates in real terms of 10% in the first quarter and

roughly 21% in the second quarter. The depreciation of the

Hong Kong dollar against the US dollar, by 12.7% during the nine months ending June 1983, has probably made Hong Kong's goods generally more competitive in the US market. Domestic

exports of three main items to this market clothing

(accounting for about 38% of

of total domestic

domestic exports to the

United States), electronic components (accounting for 8%), and

watches and clocks (accounting for 78)

increased

substantially in real terms in the first half of this year

compared with the same period last year.

The rate of

utilization of quota for textiles and clothing is estimated at

53% at the end of June 1983, considerably higher than the 47%

recorded at the end of June 1982.

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2.4

Domestic exports to the United Kingdom, at $3,469

million in

in the first half of 1983, was 9% higher in value

terms over the same period of 1982. Since prices are

estimated to have risen by 1%, there was an increase of about

8% in real terms. The weak consumer demand in the United

Kingdom arising from the recession, coupled with the

appreciation of the Hong Kong dollar against sterling during

1982, probably contributed to the weak domestic export

performance to this market in the first quarter. However, as

the U.K. economy began to revive, domestic exports to the

United Kingdom improved and a growth rate of about 20% in real terms was recorded in the second quarter. Among the major

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