HONG Kong's trade with the world bounced back to life during May after spending the first quarter in the doldrums. The volume of re-exports for the first five months of the year jumped by 13 per cent, compared to the same period last year, while the volume of domestic exports dropped by eight per cent. It is the second piece of good news for the economy so far this week. The Government announced yesterday that gross domestic product grew at 5.5 per cent during the first quarter of the year. Enzio von Pfeil, chief regional economist at S G Warburg, said: ''It is a trade related recovery. The growth rate of 5.5 per cent has a lot of upside potential. The improvement in trade will continue. ''The General Agreement on Tariffs and Trade is predicting a five per cent global increase this year - double last year's. ''There was a sluggish start to the year, but things will start to move up.'' During the same period, prices for re-exports and exports rose by 0.6 per cent and 1.1 per cent respectively, while import prices increased by 1.6 per cent. Comparing May with the same month last year, the volume of re-exports rose by 14 per cent, while domestic exports fell by 4.2 per cent. This means a combined growth in total exports of 10 per cent. For the same period, imports rose by 15 per cent. For this period, the prices of domestic exports rose by 1.4 per cent and re-exports by 0.7 per cent. Import prices increased by 1.4 per cent. A year-on-year comparison of volumes of re-exports reveals an increase in fuels of 45 per cent, raw materials and semi-manufactured goods of 23 per cent, foodstuffs of 19 per cent, capital goods of 15 per cent and consumer goods 8.23 per cent. A Government spokesman said: ''Over the same period of comparison, the prices of re-exports of foodstuffs, capital goods and consumer goods increased by 2.4 per cent, 2.2 per cent and 0.9 per cent respectively. The re-export prices of fuels decreased by 16 per cent. Those of raw materials and semi-manufacturers remained virtually unchanged.'' Sherry Hum, economic analyst at Smith New Court, said: ''We expect re-exports over the first half to be about 14 per cent higher than for the same period last year. In the second half, this should increase to about 15.5 per cent.'' She said: ''Re-exports are likely to pick up given the strong United States recovery. We should also begin to see the impact of recoveries in Europe and Japan.'' Domestic exports of radios plunged by 62 per cent, while footwear dropped 30 per cent. These now traditional falls are generally considered to be a result of the territory's accelerating transition from a manufacturing to services-based economy. The volume of goods imported during May this year, compared to May last year, increased by 8.8 per cent. The biggest increases were in tobacco, radios, television sets, records, tape recorders and amplifiers. There were across-the-board increases on most imports of raw materials with semi-manufactured goods up by 2.9 per cent, foodstuffs by 1.7 per cent and consumer goods 1.3 per cent.