TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 7

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7.

Re-exports increased by about 17% in

This

real terms in the third quarter over the same

quarter last year, representing a marked

slow-down from the growth rates of 34% in the

first quarter and 25% in the second quarter.

The growth rate of re-exports to China, in

particular, has been on a declining trend.

was partly due to the effect of China's

austerity programme and its intensification in

recent months, and partly due to a larger base

of comparison following substantial growth for

two consecutive years. Another factor was a

slackening in outward processing activities

across the border. The slow-down in domestic

exports to China was attributable to broadly the

same reasons.

8.

The year-on-year growth rate of

imports also slowed down considerably, to about

4% in real terms in the third quarter, from 26%

and 15% respectively in the first and second

quarters. On the same basis of comparison,

retained imports fell by about 8% in real terms

in the third quarter, following increases of 19%

and 7% respectively in the first and second

quarters.