ENG-2015 — Page 71

Chart 6

25

20

15

10

5

O

3

The Economy

Per cent

Hong Kong's Goods Trade

(year-on-year rate of change in volume terms)

Imports of

goods

-5

-10

Total exports of goods

こ

-15

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

1 2011

2012 | 2013 | 2014

|

2015

Merchandise exports suffered a setback in 2015 amid protracted sluggishness in global demand.

Imports of goods likewise fell 3.2 per cent in real terms in 2015, following a 2.3 per cent growth in the preceding year. Apart from the slide in those imports for subsequent re-exporting, retained imports also weakened considerably. Retained imports, referring to imports for domestic use, accounted for about a quarter of total imports and relapsed to a 7.4 per cent decline in real terms in 2015 after a moderate increase of 4.5 per cent in 2014. The decline partly reflected a fall-off in retained imports of raw materials and semi-manufactures amid sluggish region-wide trading and production activities, and partly reflected reduced intake of the relevant retained imports upon setbacks in the retail market as well as a fall-off in machinery and equipment acquisition during the year.

Exports of services slackened to a slight decline of 0.6 per cent in real terms in 2015 as a whole, compared with 1.1 per cent growth in 2014. The fall in exports of travel services widened and remained the main drag, as visitor arrivals decelerated further to record Hong Kong's first annual decline since 2003, while tourist spending on big-ticket items continued to retreat. Exports of trade-related and transportation services remained lacklustre amid sluggish trade and cargo flow. However, hectic fund-raising and cross-border financing activities drove solid growth in exports of financial and other business services, thereby rendering some cushioning to overall services exports.

Imports of services grew moderately by 5.1 per cent in real terms in 2015, after 2.0 per cent growth in 2014. The pick-up in growth was buttressed mainly by notable growth in the imports. of travel services throughout the year, reflecting strong interest among local residents in travelling. Apart from stable local job and income conditions, the higher purchasing power of residents following depreciations of many currencies against the US dollar conceivably also fostered interest in overseas travel. Meanwhile, imports of financial and other business services

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