Hong Kong's exports will continue to grow in 2007 but at a moderate pace, according to a trade forecast report released here Monday by the Hong Kong Trade Development Council.

According to the report, Hong Kong's exports are forecast to rise by six percent in 2007, two percentage points lower than expected export growth for 2006. Re-exports are expected to rise by 6.5 percent, but domestic exports are likely to dip by 10 percent.

The council's Chief Economist Edward Leung said that while the United States is leading slow global economy, Hong Kong should benefit from a more dynamic Asia, led by the Chinese mainland.

"The Chinese mainland now accounts for nearly half of the city's total exports and is projected to chalk up further robust economic growth in 2007," Leung said, adding that domestic demand which has been galloping along at an estimated nine percent annually in recent years, will remain the bastion of growth on themainland.

However, Leung advised Hong Kong manufacturers and exporters toprepare for new challenges in particular to the Chinese Mainland'sregulatory system.

The report also told that the city's electronic industry, clothing and financial services are expected to ease in 2007.