2580
IMIORITY
EN CLAIR
FM HONG KONG 021000Z
UNCLASSIFIED
HKK 100/2.
TO PRIORITY F C O TELNO 214 OF 2 MARCH
INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON, WASHINGTON (FOR
HERMANN), BRUSSELS (FOR BURGESS) AND GENEVA (FOR PEARSON).
•
THE FINANCIAL SECRETARY, IN MOVING THE APPROPRIATION BILL FOR 1977 IN LEGISLATIVE COUNCIL THIS AFTERNOON, MADE THE FOLLOWING
POINTS:
PART I: PRESENT ECONOMIC POSITION
1. THE FOUR YEARS 1973 TO 1976 SPAN A CLEARLY DEFINED CYCLE OF ACTIVITY. REAL GROSS DOMESTIC PRODUCT (1966 PRICES) GREW BY 23% FROM 1973 TO 1976, ALTHOUGH THE GROWTH RATE IN INDIVIDUAL YEARS VARIED FROM 14% IN 1973, TO BETWEEN 2% AND 3% IN 1974 AND 1975, TO AN ESTIMATED 16% IN 1976.
2. THE RECESSION IN HONG KONG WAS RELATIVELY SHORT LIVED. COMPETIT-
IVENESS WAS RESTORED AND THIS CONTRIBUTED TO THE 43% INCREASE
ACHIEVED IN THE VALUE OF EXPORTS IN 1976, TO THE REDUCTION OF UNEMPLOYMENT TO ITS FULL EMPLOYMENT LEVEL OF AROUND 4 1/2% AND TO THE INCREASE IN NOMINAL WAGE RATES BY 16% IN THE YEAR ENDING
SEPTEMBER 1976.
3. THE PRELIMINARY ESTIMATE OF G.D.P. FOR 1976 AT CURRENT MARKET
PRICES IS DOLLLARS 47.1 BILLION WHICH IS 26% HIGHER THAN THE PROVISIONAL ESTIMATE FOR 1975 OF DOLLARS 37.4 BILLION.
THE PRELIMINARY ESTIMATE OF REAL G.D.P. FOR 1976 IS DOLLARS 23.6 BILLION (+16%)
/PART 11: THE