THE Hong Kong Trade Development Council predicts robust trade growth for 1995, with strong regional demand supported by continued recovery in the United States and Europe. Its predictions of 15 per cent growth in value and 14 per cent in volume for the territory's trade are broadly in line with end-of-year estimates by other analysts. Chief economist Edward Leung said: 'We expect the global economy will continue to grow, and particularly demand in Europe will be higher next year. In the United States and Japan, the economic recovery will continue. 'Establishment of the World Trade Organisation [WTO] - which is set to replace the General Agreement on Tariffs and Trade [GATT] - will create an international environment more conducive to trade. 'We will continue to expect China's markets to improve as real income for the rural and urban areas edges up. Of particular interest will be the growth in exports to other Asian markets. 'We expect Asian countries to grow rapidly but display a more balanced growth than in the past. 'This is because past growth largely has been dependent on foreign direct investment. Asia now is on a more balanced growth path.' During the first 10 months of this year, exports grew 12 per cent, compared with a 13 per cent increase for the whole of last year. Domestic exports dropped one per cent, while re-exports gained 15 per cent. Uncertainty about rising interest rates would continue to be a restraining factor on trade prospects, he said. 'Interest rate increases in the United States, we expect, will be followed by rises in the United Kingdom and Australia. This will check an expansion in consumer spending. 'For the European market, we expect unemployment will stay high and government measures to reduce the budget pressure could mean higher taxes, which will restrain growth and consumer spending. 'In China, we believe the government will maintain a restrained monetary policy and will check institutional spending.' The report, 'Hong Kong's Trade Outlook for 1995', adds that the low inventory levels of Hong Kong-type products - particularly non-durable consumer goods - would assist trade growth in major markets. It concludes: 'This will be reflected in a robust increase in re-exports of China origin goods, given Hong Kong's production in the mainland and Hong Kong's unrivalled importance as the entrepot for China.' Expected increase in external demand for domestic exports was likely to be offset by continuing relocation of production into China, resulting in zero growth in value, or one per cent decrease in real terms. But re-exports were projected to rise 18 per cent and 17 per cent, nominal and real growth respectively. Hongkong Bank also predicts a 15 per cent increase in the value of exports, and 13.8 per cent in volume. Economic adviser Jim Wong said: 'Industrialised countries are going to expand more rapidly. The United States economy will slow but there will be an increase in demand for non-durable consumer goods.'