23.
3
Domestically generated inflation appears to have moderated
in 1981, with the gross domestic product deflator now running at about
10% per annum, but the rate of increase in consumer prices, at about
14% per annum has continued to be rapid. This is attributable to
increases in world prices and to the depreciation of the Hong Kong
dollar. It is undoubtedly a serious matter for our people.
Even though,
on average, money incomes have been increasing at an even more rapid
rate and even though employment is relatively full, and that in these respects
there has generally been overall some improvement over 1980, there are still
sectors in which real incomes are static or have fallen, and many more in
which the rate of increase in real family incomes has not
in the latter 70's with consequential disappointment.
PROSPECTS FOR 1982
24.
A
C
been as fast as
:
As for 1982, the balance of opinion is that some recovery
in the world's major economies, albeit hard to quantify, can be
expected, with some beneficial effect on world trade. Much turns on
the level of interest rates, particularly in the United States, but I
repeat that the consensus is that things are likely to be better not
worse; the recession is bottoming out. And where there is some revival
in demand we are well placed to take advantage of it. Our ability to
react quickly to meet an increase in export orders has been well
demonstrated in the past, and with the recent depreciation in the
exchange value of the Hong Kong dollar, our prices are now very
competitive. So while awaiting the economic tide in the world to turn
around, I have confidence that when it does, Hong Kong will experience
yet another year of prosperity.
/MULTI FIBRE...