ENG-1995 — Page 82

THE ECONOMY

Growth in Hong Kong's visible trade (year-on-year growth rate in real terms)

Percent

50.0

Re-exports

40.0

30.0

20.0

10.0

Imports

Total exports

Domestic exports

-10.0

1985 1986 1987 1988 1989

1990 1991 1992 1993 1994 1995

Re-export growth in 1995 was faster than in 1994. Domestic exports also resumed a positive growth. Imports continued to grow markedly.

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economies may also have rendered Hong Kong products less competitive in the USA. For the year as a whole, re-exports to this market grew by about seven per cent in real terms. In contrast, re-exports to many other major markets, such as Japan, Taiwan, the United Kingdom and Germany, all accelerated in growth, rising by about 24 per cent, 23 per cent, 19 per cent and six per cent, respectively, in 1995. The major suppliers of Hong Kong's re-exports, apart from China, were Japan, Taiwan, the USA and the Republic of Korea.

Analysed by end-use category, Hong Kong's re-exports comprised mostly consumer goods, and raw materials and semi-manufactures, accounting for 49 per cent and 30 per cent, respectively, of the total value. Re-exports of office machinery, telecommunications and sound recording and reproducing equipment and electrical machinery, registered faster increases than re-exports of other commodity items.

In 1995, Hong Kong's external trade underwent further structural change, marked by a continued shift from re-exports to transshipment. Reflecting this, seaborne out- ward transshipment recorded a further robust increase of 35 per cent in tonnage terms in the first three quarters of 1995 over the same period last year. Analysed by market, transshipment to China, the USA, Germany, Japan and the United Kingdom all rose markedly, by 30 per cent, 26 per cent, 43 per cent, 78 per cent and 53 per cent, respectively. Transshipment to Taiwan however slowed down to increase by only four per cent, after a strong upsurge in 1994. As in the case of re-exports, manufactured goods accounted for the largest share of seaborne outward transshipment, followed by chemicals and related products, crude materials, foodstuffs, and machinery and transport equipment.