ECONOMY | Staff Reporter, Hong Kong

Hong Kong exports to grow 6% next year: HKTDC

Prospects remain positive for semi-conductors and related components.

The Hong Kong Trade Development Council (HKTDC) remain bullish on export prospects for the coming year as they project exports to rise in value by 6% and increase in volume by 4% in 2018, according to a press release. 

"Overall demand will remain sturdy with the expansion in both developed and emerging economies. This year's positive export trend will likely carry on to next year, though the pace of growth is expected to slow,” said HKTDC Director of Research Nicholas Kwan. 

Seven in 10 exporters also expect sales to either stabilise or increase in the coming year as they expressed greater levels of business confidence as highlighted in the marked improvement in HKTDC Export Index. 

The index, which monitors current export performance and gauges near-term prospects, hit 47 this year as opposed to lacklustre 36.8 in 2016. 

Strong domestic demand and higher levels of foreign investment have also propelled the pace of growth amongst ASEAN companies which is likely to maintain the positive trajectory for the year ahead. 

"Rising export production should fuel demand for imported intermediate and capital goods," said HKTDC Principal Economist Billy Wong.

Wong identified emerging technologies like cloud computing and Internet of Things as sectors that will snap the lion’s share of exports, driving steady demand for semi-conductors and related components. Virtual reality applications, robotics and wearable electronics are also projected to have a good year ahead. 

Demand for educational toys and those that incorporate VR and AR applications are also projected to be robust.

Platinum jewellery is expected to be popular next year thanks to the metal’s sluggish price whilst demand for gold is likely to stabilise in 2018.

Photo from DustyDingo - Own work, Public Domain

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