Stable consumer demand is seen to further support Hong Kong’s jewellery exports in 2020 amid macroeconomic and geopolitical challenges, according to the Hong Kong Trade Development Council (HKTDC).
In its export outlook for 2020, the council said Hong Kong’s overall exports could drop by 2 percent in 2020 on the back of increasing protectionism and other challenges. Exports are expected to have declined by 4 percent in 2019.
Shipments of precious jewellery, however, maintained their momentum from last year with a growth of 10.7 percent – the highest of all major export sectors, revealed HKTDC.
“The growth in Hong Kong’s jewellery exports remained consistently strong over the course of 2019,” the council said. “Despite gold and silver prices having rallied recently, demand for such jewellery items is likely to be sustained by continuing consumer demand. Among the market segments seen as having the greatest potential are stylish fashion jewellery, designer pieces and wedding / special occasion items.”
Despite relaxed monetary policies likely to be adopted by major economies and the intermittent progress of the China-US trade negotiations, HKTDC said Hong Kong’s export growth will likely remain under pressure throughout 2020.
“Although the Sino-US trade dispute may be partially settled, the practice of protectionism is likely to prevail and broaden in its application. In order to weather this, Hong Kong exporters need to diversify their markets and production,” it further remarked. “Taking all these various global, regional and local factors into consideration, the HKTDC Research forecast for Hong Kong’s 2020 exports is a year-on-year contraction of 2 percent.”