Gloomy outlook for HK's exports sector
2011-12-29 17:05:05
Hong Kong's Trade Development Council is forecasting a gloomy outlook for the city's key exports sector.
It says Hong Kong's export growth will slow down to just one percent in 2012, down sharply from 10 percent this year.
The council uses Christmas sales in Hong Kong's major overseas markets as a gauge for prospects in the year ahead.
It says consumers in major markets such as the US and Europe are tightening their belts amid shaky economic outlook.
Daniel Poon, assistant chief economist, Hong Kong Trade Development Council, said: "US consumers will continue to be cautious and their demand for Hong Kong products will continue to moderate next year.
"And across the Atlantic, the EU is actually now on the brink of recession because of the sovereign debt crisis. And most European countries will have a very slow or negative growth next year.
"So consumers in general in Europe will continue to be very conscious and their demand for Hong Kong products will show no growth or even decline. So our exports to the EU will not be optimistic next year."
Exports account for about 25 percent of Hong Kong's GDP.