ENG-1997 — Page 139

TRADE AND INDUSTRY

External Trade

Hong Kong's external trade experienced a moderate growth in 1997, with total trade increasing by 4.7 per cent over the previous year. In particular, re-exports registered a 5.0 per cent increase, reflecting the continued important role of Hong Kong as an entrepot. The gross total value of re-exports was $1,244.5 billion. Imports also rose by 5.2 per cent to $1,615.1 billion.

In 1996, Hong Kong was the world's seventh-largest trading entity in terms of value of merchandise trade; the fourth-largest if all Member States of the European Union are counted as a single entity. In 1997, it recorded a trade deficit of $159 billion with total exports at $1,455.9 billion and imports at $1,615.1 billion.

Its largest trading partner is the Mainland of China, followed by the USA and Japan. Appendices 20, 21 and 22 provide summary statistics of external trade.

Imports

Hong Kong is almost entirely dependent on imported resources to meet the needs of its more than six million people and its diverse industries. Consumer goods, at $587 billion in 1997, constituted the largest share of total imports. This was followed by raw materials and semi-manufactured goods ($562.4 billion) and capital goods, foodstuffs and fuels ($465.7 billion)

The Mainland of China, Japan and the USA were the main suppliers of Hong Kong's imports in 1997, accounting for 37.7 per cent, 13.7 per cent and 7.8 per cent of the total, respectively.

Domestic Exports

Clothing continued to be the largest component of domestic exports, valued at $72.2 billion or 34.2 per cent of the total in 1997. This percentage has remained stable over the past decade. At $33 billion, electrical machinery, apparatus and appliances came second. Other exports included photographic apparatus, equipment and supplies and optical goods; watches and clocks; textiles; and office machines and automatic data processing machines.

The pattern and volume of Hong Kong's export trade are closely related to the economic conditions and commercial policies of its major overseas markets. In 1997, the Mainland of China, the USA and the United Kingdom were Hong Kong's largest markets, absorbing 30.2 per cent, 26.1 per cent and 5.1 per cent of total domestic exports, respectively.

Re-exports

Re-exports sustained moderate growth in 1997, reflecting the continued importance of Hong Kong as an entrepot for the Mainland of China. Re-exports made up 85.5 per cent of the value of total exports.

Principal commodities re-exported included electrical machinery, apparatus and appliances ($136.8 billion or 11 per cent of the total) and telecommunications and sound recording and reproducing apparatus and equipment ($116.8 billion or 9.4 per cent of the total). Other major re-exports included clothing; textiles; and baby carriages, toys games and sporting goods. The Mainland of China, Japan and Taiwan were the main origins of the re-exports; the Mainland of China, the USA and Japan were the main destinations.

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