Exports U-turn but better days ahead

The Hong Kong Trade Development Council (TDC) has revised down its forecast for Hong Kong's export growth for the year from 1 per cent growth to a 1 per cent decline, said deputy executive director Benjamin Chau.

However, while he would not put a number on next year's expected export growth, Chau was more optimistic.

Container throughput in Hong Kong, the world's third-busiest port, suffered a year-on-year decline of 9.9 per cent in July, 9.2 per cent in August, and 2.4 per cent in September, according to the Hong Kong Port Development Council. For the first nine months throughput declined 3.9 per cent year-on-year, it said.

Pega, a Hong Kong manufacturer of iPhone accessories, expects its exports to fall 5 per cent to about HK$7 million this year, due mainly to the European debt crisis, said sales manager Vincent Lui. Pega has a factory in Shenzhen and exports mainly to Europe and the United States.

However, its exports should improve next year, said Lui.

In a survey of 1,500 buyers and exhibitors at the recent Hong Kong Electronics Fair and Hong Kong International Lighting Fair, half the respondents indicated that they expect better prospects next year.

About 35 per cent expect no change and the rest expected worse prospects.