Mainland fuels HK export growth

By Lillian Liu | China Daily | Updated: 2007-11-29 07:09

Hong Kong's exports for the first 10 months rose 9.6 percent year-on-year, helped by strong demand from the mainland, the city's largest export destination, and other emerging markets in Asia, and offsetting losses from the US market.

During the period, goods imports increased by 10.4 percent, reflecting a trade deficit of HK$137.6 billion, the Census and Statistics Department (C&SD) of Hong Kong said early this week.

The C&SD said that in October alone, the total value of goods exports increased by 9.8 percent over a year earlier to HK$253 billion. In the same month, imports increased by 12.1 percent over a year earlier to HK$261.7 billion.

"Merchandise exports saw vibrant growth in October. The robust mainland market continued to be the main force driving Hong Kong's exports," said a government spokesman.

Many other emerging markets in Asia such as Vietnam and Thailand remained fairly strong, while exports to the European market saw solid growth.

"All these are very favorable factors helping offset the softness of the US market, weakened by a sharp slowdown in the economy and the subprime or credit market crisis," he said.

The spokesman also said the outlook for the external trading environment has become more uncertain. "The repercussions of the credit market turbulence have yet to be fully played out. The weakness of the US market will be the main downside factor in the period ahead," the spokesman said.

(China Daily 11/29/2007 page15)