HONG KONG: Hong Kong's exports are expected to grow by 4 percent in 2013, faster than this year's pace, on expected improvement in demand from neighbouring China, the world's second-largest economy, the Hong Kong Trade Development Council (HKTDC) said on Friday.

Hong Kong, an Asian financial hub, will likely see its exports rise two percent this year in terms of dollar value, the council said.

Exports in terms of volume will also show a similar trend, with growth seen at one percent for next year, better than the expected 1.5 percent decline for this year, it said.

"The Chinese economy is bottoming out and there are some short-term measures to stimulate private consumption. In the longer run, income re-distribution measures will also help to raise consumption on the mainland," the council's director of research Edward Leung told a news conference.

Confidence among local exporters has been weak, with the council's quarterly export index hitting a new low at 31.6 in the fourth quarter from 35.3 in the previous quarter. Readings below 50 signal contraction over the short term.

Hong Kong plays a crucial role in handling China's external trade. More than 60 percent of the island's total re-exports originated from the Chinese mainland in 2011.

China's export growth has regained some strength since September, but concerns are mounting that such momentum may not last long and exports are unlikely to see double digit growth again in the coming years, given still anemic world demand.

"Our exports rebounded very fast in recent months, largely due to the launch of new smartphones, which are manufactured in mainland China and transported by air to different parts of the world via Hong Kong," Leung said.

 

Source : economictimes.indiatimes.com