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HK Export Outlook Stays Bright
Hong Kong exports are expected to remain strong next year because of the favourable outlook for the world economy, trade officials said Friday.
A report by the Hong Kong Trade Development Council (TDC) said Hong Kong's exports of goods and services are likely to remain healthy with world trade growth expected to pick up next year.
However, the outlook for world trade and economies is not without risks, including surging oil prices. The pace of recovery of some Southeast Asian economies still depends on political stability and commitment to financial and institutional reforms, the report said.
"By and large, the world's trading environment will remain favourable on the back of sustainable US growth, a continued expansion of the EU and a steady recovery of most Asian economies, including Japan," the report said.
Daniel Poon, TDC assistant chief economist, said the continued strength of the US economy this year had been reinforced by a revival in Europe. More importantly, the aftershocks of the Asian financial crisis had continued to subside with most regional economies staging a sustained recovery.
He added that sales to the Chinese mainland also rebounded considerably, buoyed by the mainland's brisk exports and demand for imported materials.
"Aside from the robust world demand, recovery in price competiveness, due chiefly to the earlier appreciation of East Asian currencies as well as the on-going cost adjustment in the SAR (The Hong Kong Special Administrative Region), has likewise facilitated Hong Kong's exports," said Poon.
Hong Kong's total exports of goods surged by 17 per cent in the first seven months of this year.
Domestic exports were up 8.0 per cent from a year earlier and re-exports surged by 18 per cent.
Hong Kong's economy is forecast to grow 8.5 per cent this year compared to 6 per cent in 1999.
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