SIMIC

The HKTDC Export Index, published by the trade promotion body, increased further in the fourth quarter of the year 2020 after rising for three consecutive quarters. The index has risen from a record low of 16.0 to 36.2 - revealing a gradual improvement in the sentiment among local exporters.

About 60 per cent of the local exporters surveyed for the index anticipate sales will increase or remain unchanged in the coming year.

HKTDC director of research Nicholas Kwan said that while local businesses still have to contend with weakened global demand, disrupted supply chains and elevated protectionism, business operations are expected to begin to revert to a more normal level when the Covid-19 vaccine becomes available, allowing the world economy to stabilise and rebound.

"Hong Kong exports have more room to grow with the new opportunities arising from Mainland China's 'dual circulation' policy and the development of the Guangdong-Hong Kong-Macao Greater Bay Area, coupled with the implementation of a free trade agreement between Hong Kong and the Association of Southeast Asian Nations (ASEAN) bloc, and the Regional Comprehensive Economic Partnership (RCEP) which promotes inter-regional trade," Mr Kwan added.

The HKTDC has also made an upward revision to its estimates for this year's total exports, from minus 10 per cent to minus 3 per cent.

"We are glad to see that the situation is better than expected. Amid the pandemic, local exporters turned swiftly to online sales platforms to connect with buyers and get new orders. Driven by the rise of the stay-at-home economy, the demand for computers, webcams and microphones has increased greatly, making the city's electronics exporters more optimistic about growth opportunities in the coming year," Mr Kwan added.