12.
Nevertheless continuing growth even at a reduced rate has meant that we appear to be avoiding serious unemployment.
rate in March this
this year The unemployment
Was only 3.5%, significantly less than the 4.19 recorded at the same time last your. Some factory workoce are working shorter hours in view the manufacturing of the sluggishness of export demand but
sector
pçale.
on
a whole is not shedding labour 2.3
any substantial Wages and salaries have increased all round in real terms, partly because the rate of inflation has fallen.
13.
11% per
annus
in
about Inflation is now running et terms of consumer prices, after remaining at around 15% for two
is partly a This trend
reflection of the years.
general slowing down in the rate of world inflation, but favourable developmento within the economy have also contributed. prescure of demand on domestic resources has moderated, growth rates of the money supply and of credit have slowed
Interest
cased significantly.
rentals for
have ratos
and lower
The
The
or
Stable
property have
also
down.
Falling prices contributed to easing inflation, but I realise that, should the
exchange
the Hong Kong dollar weaken further
inflationary pressures will reappear.
value of
(b) The Public Finances
14.
This reduced growth rate of our economy will have its effect on the public financos. Revenue collections so far this year have not reached expectations, due largely to shortfalla in the yields from land sales, and earnings and profits tax. Total expenditure is higher than estimated due partly to the
of more
and other purchase of
land then expected
unavoidable
capital expenditure, but mainly to the annual adjustment civil service. pay. It now seams unlikely that this year the budgetted surplus of $2.3 billion will be achieved, and present indications are that this year'e accounts will only break even.
to
6
/15. The
1