2
Why not
bin desertoficitant
COMPILETITIAL B
14
1977, very high public and private cxpenditure on
building and construction is another contributing
factor. As a result, despite domestic exports in the
first half of the year at only 3% higher in real
terms than a year ago, manufacturing wages were still
increasing. But as the growth in the economy in the
long run must depend on exports, the situation in 1977
is not sustainable. slowed down growth in exports in
1977 will lower the growth in consumption expenditure
in 1978 and this is likely to coincide with a fall off
in private demand for building and construction activity.
The inability of domestic exports to grow as a result
follos
of restrictive limits, would thus be particularly damaging.
:
/6.
CCNFIDENTIAL W 75
t