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recovery of demand in our major overseas markets generated an unusually rapid
increase in our exports. So we did better in 1975 than expected, with the gross
domestic product, in real terms, increasing by some 3.2% over 1974.
The
in recovery
North
America
and
Western
Europe
strengthened during the first half of 1976; and this brought about a further acceleration in the growth of our exports. In the first half of 1976 the volume
of our domestic exports was 36% higher than in the corresponding period of 1975
and had fully recovered the ground lost during the recession. With manufacturing employment in June this year at a record breaking seven hundred and fifty thousand
and real wages rates in manufacturing in the first half of the year increasing at an ann- ual rate of over 12%, I can now say with confidence that in terms of industrial
activity, fullness of employment and level of real incomes our economy is back on
the course from which it was knocked by the recession.
at
Of course, we cannot expect our economy to go
to go on expanding
• the pace of the last twelve months which reflected recovery from deep recession. Even if the demand were there we would soon begin to face capacity limitations of one sort or another. Furthermore the recovery of demand in our major markets has been influenced by replenishment of stocks run down during the recession. This, too, cannot be expected to continue at the same pace and, even
though there is room in our overseas markets for further recovery in consumer demand and capital investment, the rate of expansion will probably slow down from
now on.
Even so, there is no doubt that 1976 will be a very good year for Hong
Kong and we are now expecting to see an increase of 25% in the quantity of our exports and of some 16% or more in the gross domestic product in real terms compared
with 1975.
Looking ahead to 1977 and beyond I must stress the point that in the
longer term our economic performance must depend very largely on our own efforts.
Better use of the labour force through more training, more skills and the provision of more productive machinery and equipment is very much in our own hands. So is the