ENG-2010 — Page 96

54 The Economy

Chart 8

Hong Kong's Visible Trade (year-on-year rate of change in volume terms)

Per cent

35

30

25

20

15

Imports of goods

10

บา

5

0

-5

-10

-15

-20

-25

Total exports of goods

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006

2007 I

2008 I

2009 | 2010

Merchandise exports staged a sharp rebound in 2010 riding on robust performance in the Asian markets.

The performance of Hong Kong's merchandise exports to the major markets mirrored the two-speed recovery of the global economy. The Mainland and other Asian markets, which account for around 70 per cent of Hong Kong's total exports of goods, remained the key growth driver, registering an increase of around 20 per cent in volume terms in 2010. Exports to the Mainland, Singapore, Taiwan, South Korea and Japan all recorded double-digit growth for the year as a whole, in the region of 15-23 per cent. Exports of raw materials and capital goods to many Asian markets picked up strongly amid brisk production activities and robust investment demand in the region. Exports of consumer goods to the Asian markets also displayed strength, rebounding strongly in 2010, more than offsetting the decline in 2009. However, in the final months of the year, as the stimulus from the restocking cycle in the global economy gradually wore off and as growth in demand in the US and Europe remained modest, industrial production and export activities across Asia saw some moderation, resulting in some tapering of growth in Hong Kong's exports to these Asian markets.

Exports to the US and Europe also rebounded during most of 2010 from the collapse in 2009. However, exports to these markets still fell short of the pre-crisis peaks in 2008. In particular, exports of consumer goods, a dominant proportion of exports to these markets, had yet to make up for the decline in 2009 despite some recovery in 2010. Consumer sentiments remained rather cautious in these advanced economies amid the weak labour market conditions. In particular, the EU market still lagged behind others, as the sovereign debt problem lingered on. Exports to this market decelerated sharply to only a small year-on-year growth in the fourth quarter.