Hong Kong exports set to stabilize in 2017: HKTDC

Hong Kong's exports are expected to stabilize in 2017, with improvements in both export value and volume, the Hong Kong Trade Development Council (HKTDC) said on Wednesday.

The organization expects the export volume to increase 0.5 percent and export value to remain flat in 2017, compared to estimates of zero percent and minus 2 percent respectively for 2016.

The world economy will see improvement next year as the economies reliant on natural resources should bottom out in sync with steadier oil and commodity prices, and the developing Asia should continue to be a stand-out performer, Director of Research of the HKTDC Nicholas Kwan said.

He said Hong Kong's exporters maintained a neutral outlook for next year, although many remain pessimistic about the export performance over the short-term.

The overall Export Index for the fourth season in 2016 was 33.7, down 5.1 compared to the previous quarter, while nearly 60 percent of respondents expect their sales to increase or remain unchanged in 2017, according to the HKTDC.

The Export Index gauges exporter confidence, and a reading below 50 indicates a pessimistic sentiment.

With marginally improving prospects for overall exports, bright spots emerge in various sectors such as electronics, clothing, toys and timepieces, Kwan said.

Augmented reality (AR) and virtual reality (VR) applications are expected to fuel growth, he said, adding the wearable electronics, notably for health and sports related wearables are also welcomed by the market.

World clothing consumption should strengthen slightly in line with the bumpy revival of the global economy, and most consumers will stick to down-to-earth items that offer comfort, function and value-for-money, Kwan said.

In addition, STEAM (science, technology, engineering, arts and maths) toys and those that incorporate VR and AR applications; smart watches, classic designs and less expensive ones are about to lead the sale, he added. Endit