TNAG-2466-FCO40-3590-Economic-situation-in-Hong-Kong-1992 — Page 75

Hong Kong Econu nic & Financial Round-up

Overview

Hong Kong Economy

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Borers

Issue No. 4/92

In February, re-exports rose sharply while domestic exports showed a remarkable growth. Imports also recorded a substantial increase. As in January, the trade performance in February was affected by the timing of the Lunar New Year holidays, though probably in a different direction. Some shipment that should have been placed in January were postponed to February, after the holidays.

2.

In the labour market, both the seasonally adjusted unemployment rate and the underemployment rate edged higher in recent months. The recent employment that had been recorded over the past few months in Hong Kong's trade performance, apart from the usual influence of the Lunar New Year holidays. consumer price inflation continued the downward trend since April last year.

3.

On the financial front, local money market interest rates edged higher in March, due to share subscription activities. The market exchange rate of the Hong Kong dollar against the US dollar moved within a narrow range close to the link of 7.80. The overall exchange value of the Hong Kong dollar, in terms of the effective exchange rate index, rose slightly during March.

4.

Boosted by favourable corporate results, the Hang Seng Index continued to rise in the early part of March, before showing some consolidation towards the end of the month. The average daily turnover on the stock market rose further.

External trade

5.

Re-exports surged by 57.0% in value terms in February over a year earlier, after virtually no growth in January. The value of domestic exports also rose sharply by 21.9%, having dropped by 26.1% in January. Meanwhile, the value of imports increased markedly by 51.5%. This compares with a decrease of 7.8% in January.

6.

In real terms, re-exports registered a substantial growth of 23% in the twelve months ending January 1992 over the preceding twelve months, while domestic exports decreased by 3%. Meanwhile, imports recorded a marked increase of 15%.

HONG KONG GOVERNMENT OFFICE

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