TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 173

10 ·

all

Domestic exports to

major markets, other than

China, grew in the first half of this year. The

depreciation of the US dollar, and hence of the Hong

Kong dollar, since March 1985

since March 1985 has helped to produce

this domestic export performance, by improving the

export competitiveness of Hong Kong's products. This

particularly noticeable in relation to domestic

exports to the Federal Republic of

of Germany, which

increased by 29%, and to Japan, which increased by

12%, in the first half of the year.

was

18.

retained

In addition, the latest

imports

of

raw

statistics on

materials

and

semi-manufactures and on the order-book positions of a

selection of large manufacturers suggest a continued

improvement in manufacturing activity in the second

half of this year. I have thus revised the forecast

growth rate of domestic exports

exports for the year as а

whole upwards to 10%, from the budget forecast of 7.5%.

19.

Looking at specific markets, the forecast

growth rates of domestic exports to the United Kingdom.

and to the Federal Republic of Germany have been

revised upwards, to 12% and 32% respectively from the

budget forecasts of 5% and 18%. Domestic exports to

these European markets are expected to continue to

/benefit

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