TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 34

Hong Kong Provisional Trade Figures for July 1989

In July, the year-on-year growth rate of re-exports was still substantial, while that of domestic exports. remained moderate. The growth rate of imports slowed down significantly. These are shown in the provisional trade figures released today by the Census and Statistics Department.

2.

The value of domestic exports in July 1989 was $21,104 million, $969 million or 4.8% higher than in July 1988, while the value of re-exports increased by $7,456 million or 31:1% to $31,431 million. The value of total exports (domestic exports plus re-exports), at $52,535 million in July 1989, was thus $8,425 million or 19.1% higher than in July 1988. The value of imports grew by 9.8% or $4,329 million over a year earlier, to $48,723 million in July 1989.

3. As the growth rate of imports was much slower than that of total exports, a visible trade surplus of $3,812 million, equivalent to 7.8% of the value of imports, was recorded in July 1989. This compares with a deficit of $284 million, equivalent to 0.6% of the value of imports, recorded in July 1988.

4.

Putting these trade figures in perspective, the value of total exports in the first seven months of 1989 was $315,689 million, made up of domestic exports of $123,162 million and re-exports of $192,527 million. Compared with the first seven months of 1988, in value terms total exports grew by $58,640 million or 22.8%, domestic exports by $7,408 million or 6.4%, and re- exports by $51,232 million or 36.3%. Over the same period, the value of imports grew by $59,262 million or 22.3%, to $325,347 million. A visible trade deficit of $9,658 million, equivalent to 3.0% of the value of imports, was recorded in the first seven months of 1989. This compares with a deficit of $9,036 million, equivalent to 3.4% of the value of imports, recorded in the first seven months of 1988.

5.

Commenting on these figures, a Government Secretariat spokesman said that the moderate growth rate of domestic exports in recent months was largely attributable to a slackening of demand for Hong Kong's products in the major overseas markets. The appreciation of the Hong Kong dollar, in line with the US dollar, against other major currencies earlier this year might have also affected the growth rate. On the other hand, the continued surge in re-exports was derived from conventional entrepôt trade as well as from the outward processing activities in China. The spokesman added that the value of retained imports fell in July over a year earlier. This suggested that the growth in domestic demand was continuing to slacken.

6.

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