Exporters see upturn abroad

PUBLISHED : Thursday, 28 January, 1993, 12:00am
UPDATED : Thursday, 28 January, 1993, 12:00am

EXPORTERS expect moderate growth in business this year, according to a survey by the Hongkong Export Credit Insurance Corp.

Most exporters predict a mild recovery in several major export markets including the United States, the survey reveals.

Eighty-three per cent of the policyholders who replied expect growth in exports, giving an average anticipated growth rate of 11 per cent. But 55 per cent of them forecast an increase rate of below 10 per cent.

The survey also shows an improvement in orders, with order books full for an average of 4.1 months against 3.6 months last year.

Exporters expect the US to remain the largest insured export market this year, with a growth rate of more than 10 per cent.

They are less optimistic about European Community countries, seeing prospects in East and Southeast Asia and some of South America as more promising.

Clothing and textiles, toys, radios and electronic components are expected to perform better this year.

In 1992, the corporation's insured exports totalled $15,404 million, up two per cent on the $15,135 million in 1991.

Growth in insured business was dampened by the prolonged global recession and sluggish consumer demand, according to the corporation.

Gross claim payments during 1992 rose 79 per cent to $45 million, mainly due to the surge in business failures, particularly in the US and Britain, which respectively accounted for 51 per cent and 18 per cent of the total claims paid.