HONGKONG last year notched up its biggest trade deficit yet at $30.34 billion in a trend economists say will stunt economic growth in the territory unless the Government takes steps to increase or improve the workforce.
Statistics released yesterday by the Government showed the overall trade deficit more than doubled the $13.09 billion shortfall posted in 1991 and was a 12-fold increase on the $2.66 billion deficit in 1990.
The trend, which economists say is unlikely to be arrested in the near future, is a measure of strong consumer demand - elsewhere in the world, indicative of a healthy economy.
Hongkong's difficulty lies in its inability to meet this demand with internal resources, mainly labour. When the territory's buyers channel their wealth into investments and shops, much of it ends up in pockets overseas.
Bank of East Asia head of economic research Benjamin Chan Sau-san said: ''We've got strong domestic investment and consumption - at around eight per cent last year - but still register growth rates of around five per cent because of the large trade deficit.
''It's all to do with supply constraints. Unfortunately we don't have the resources to meet increasing demand. That will continue to be the trend because if we have the new airport, we will import more materials and labour, maintaining the trade deficit.'' Yesterday's figures highlighted Hongkong's role at the centre of a vibrant two-way re-export market.
