Net service exports soar 33%

All thanks to economic recovery.

According to the Asian Development Bank, Hong Kong’s export and import growth both accelerated slightly in 2013, reflecting economic recovery in the advance economies in the latter half of 2013.

Net services exports grew by 33%. The combined goods and services balance produced a modest surplus of $2.9 billion, and the current account surplus widened to 2.1% of GDP from 1.6% in 2012.

Here’s more from ADB:

This outcome, together with a net capital inflow of $2.2 billion, generated a balance of payments surplus of 2.7% of GDP.

Official foreign reserves increased to $311.2 billion by the end of 2013 from $305.8 billion a year earlier.

Tracking movements of the US dollar to which it is pegged, the local currency appreciated in nominal effective terms by 3.7% against the currencies of the economy’s major trading partners in 2013. Under the currency board system, interest rates generally align with the policies of the US Federal Reserve.

The low interest rate environment pushed domestic credit to 170% of GDP in 2013, for a growth rate of 8.2%, and the total loan-to-deposit ratio to 72.9% in January 2014.

The total loan portfolio of authorized institutions, including their lending abroad, expanded by 16%, up from 10% in 2012.

Tighter macroprudential policies and fiscal measures imposed in February 2013 to contain soaring property prices lowered the ratio of property loans to total loans to 30% from about 33% in 2012.

The money supply grew by 12.3% in 2013, substantially outpacing nominal GDP growth and somewhat more quickly than the 11.1% rate posted in 2012.