Hong Kong's exports edged up to 4.8% y/y in 2Q14

In line with better Chinese trade.

Exports improved to 4.8%y/y in 2Q14 from 0.7% last quarter, consistent with better

Chinese trade during the quarter.

According to a research report from UBS, exports of goods and services were 212% of nominal GDP, and while much of these exports are not actually produced in Hong Kong, the economy does provide shipment, logistics, finance and services to the sector.

Thus trade is a key driver of employment and income, and by extension consumption and investment.

Further, exports should continue to improve gradually in 2014, driven by better final demand from the developed world.

Also, the report noted that what’s new in 2014 is the possibility that Europe could finally emerge as a source of growth.