The Trade Development Council's Chief Economist Edward Leung expects Hong Kong to post only a 3.3% growth in exports, down from the 4% forecast previously.

Mr Leung said: "Resumption of travel by overseas buyers, coupled with the renewed marketing efforts of Hong Kong suppliers, should bode well for Hong Kong exports.

"But the repercussion of SARS is expected to linger on for a while, and exports will likely pick up more strongly only towards the last quarter of 2003."

A council survey revealed that SARS kept many buyers away from Hong Kong and the Pearl River Delta region.

Up to 84% of respondents said they knew of potential buyers who called off visits because of the outbreak. The disease also made Hong Kong business people unwelcome in overseas markets.

Fortunately, some regular foreign buyers continued to place orders with Hong Kong companies while staying overseas. But these were mainly re-orders, not orders for new products which they needed to see for themselves.

Most companies had to rely on emails, faxes, the telephone and samples sent through couriers to keep in touch with their customers.

The survey also sought respondents' views on their business prospects in the coming months and what they thought should be done to resuscitate business.

Only 18% of those interviewed expect some improvement in exports during the second half of this year.