G.F. 323

CONFIDENTIAL #2

機密

24.

and 1976 both construction activity and the gross domestic product grew

*

at a real average annual rate of 9 suggests building and construction

activity in 1976 was roughly back to a level consistent with

overall economic activity. In 1976, expenditure on building and

construction represented 12% of the gross domestic product. This

proportion in the past 15 years has varied between 7% and 17%.

Table 25 J

Public and private expenditure on building and construction

49.

Public expenditure at constant prices on building and

construction did not vary as much as private sector expenditure between

1961 and 1972. But from 1972 onwards, it increased substantially.

At the same time private sector building and construction levelled off

as a result of price increases caused by limited available capacity.

So, public sector building and construction activity gained in

importance, from 28% of the total in 1972 to 40% in 1974 and 1975.

But the subsequent more rapid devel●pment in the private sector brought

the percentage down to 33% in 1976 despite an increase in the public

sector caused by the building of the Mass Transit Railway.

50.

Private sector expenditure on building and construction in

1976 was 55% higher in real terms than in 1975. This increase in actual

work done was accompanied by intentions for further increases, as

indicated by statistics on the floor areas of private new buildings

for which the Building Ordinance Office had given consent for work

to start. During 1976, the floor area involved was 26,991 square

feet, 38% higher than in 1975. Given such a large increase in demand,

the building and construction industry may again be under strain in the

future.

Table 26 J

CONFIDENTIAL

XXL TR

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