Hong Kong-based jewellery exporters are more upbeat about growth prospects moving forward as reflected in a higher export index for the fourth quarter of 2020, according to the Hong Kong Trade Development Council (HKTDC).      

The HKTDC Export Index, a measure of the confidence levels of Hong Kong exporters, was up 11.1 points to 36.2 in Q4 – the third consecutive quarterly increase. Improvements were seen across major industry sectors, with jewellery recording the sharpest increase of 12.9 points to 33. 

“This suggests that exporters are less pessimistic about their likely export performance in the coming months. With the overall figure staying below the watershed mark of 50, this indicates considerable uncertainties remain regarding the short‑term export outlook,” the council said in its latest export index report.

Bullish sentiment aside, Hong Kong’s jewellery exports are likely to remain slow, especially for big-ticket goods, according to a separate HKTDC export outlook report for 2021.

“Any growth in Hong Kong’s jewellery exports looks likely to remain sluggish at best, particularly in the case of high‑end items,” the report said. “The demand for luxury jewellery (including gold and diamond items) has been notably weakened, possibly on account of the mass cancellation / postponement of weddings and other celebrations triggered by the pandemic.”

The council, however, said designer pieces and fashion jewellery items may prove to be more resilient. 

Overall Hong Kong exports are expected to grow by 5 per cent in 2021 as the world economy “mildly and unevenly” returns to stability, backed by a generally accommodating policy environment and a stronger response to the pandemic. HKTDC expects Hong Kong exports to register moderate year‑on‑year growth over the next 12 months, albeit from a relatively low comparison base. 

“Perhaps most reassuringly, it is anticipated that Covid-19 vaccines will become available in 2021, a development that will play a key role in the ultimate resumption of normal business operations and economic activity over the longer term,” the council said.