Why Europe could finally be Hong Kong trade's silver lining

Just a possibility, but a good one nonetheless.

Exports are expected to keep enjoying their gradual improvement in 2014, driven by better final demand from the developed world.

According to a research note from UBS, however, what’s new in 2014 is the possibility that Europe could finally emerge as a source of growth.

Meanwhile, exports improved further to 6.8%y/y in July from 4.8% last quarter.

The report noted that what this means is that exports of goods and services were 212% of nominal GDP.

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.