Hong Kong expects exports to surge by 12% this year

Asian Economic News, August 9, 2004

HONG KONG, Aug. 5 Kyodo

Hong Kong has raised its forecast for growth in total exports this year to 12 percent, surpassing a previous forecast of 7 percent, the Hong Kong Trade Development Council said Thursday.

Total exports amounted to HK$926.3 billion (about $118.8 billion) for the first six months of this year, a 15 percent increase on the year, according to a statement issued by the council.

The council attributed the higher-than-expected growth to the Japanese economic recovery and weakness in the U.S. dollar.

''Despite Chinese government measures to slow down their economy to prevent overheating, it continued to grow, although at a slower pace,'' said Edward Leung, the council's chief economist.

However, he warned that further rises in crude oil prices could slow down the global economic recovery.

Electronics and jewelry are expected to be the star performers in Hong Kong's merchandise exports with growth of 24 percent and 19 percent recorded, respectively, in the first half of this year.