Summary:
As there is a growing demand in Asia and Europe for made-in-China-goods, the
Hong Kong’s exports have been growing for the past seventeen months; this is due to
the surging demand from developed countries for cheap manufactured goods from
China and demand from factories and plants on the mainland for raw materials from
neighboring countries. About nine-tenths of all the Hong Kong’s exports rose 10.7 per
cent year on year to $154 billion last month. In the first ten months of the year, Hong
Kong’s exports rose 11.5 per cent over the same period last year.
Explanation:
When other countries are growing their demand for the made-in-China-goods,
China has to increase the supply of her export goods. Since Hong Kong is famous for
her entrepot, the made-in-China-goods have to pass through Hong Kong for their
shipment to other countries. The shipment of goods passing through Hong Kong on
their way to final destination is called re-export. The re-export of Hong Kong
increases which means that the export of Hong Kong increase. The Gross Domestic
Products of Hong Kong is made up of private consumption expenditure, gross
investment expenditure, government consumption, exports of goods and services and
imports of goods and services that is “C+I+G+(X-M)”. This is the formula we used to
use to calculate the GDP of Hong Kong. Therefore, as there is an increase in exports
of goods, the net exports of goods increases and the GDP of Hong Kong increases. As
Hong Kong’s GDP is rising, this can show that Hong Kong is starting to have its
recovery period. As a result, Hong Kong’s economy is starting to recover.
South China Morning Post on 26th November, 2003