$
(
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Other economic indicators are even more encouraging, particularly
in the vital matter of competitiveness which I referred to earlier.
Taking the internationally accepted measure of competitiveness,
relative normalised unit labour costs, these improved by 10% during
1981. Wage and salaries per unit of output in manufacturing
industry rose by only 2% in the year to the first quarter of 1982.
The wholesale output price index for home sales of manufactured
goods is now at a level no more than some 84% higher than a year
previously, the lowest year on year since January 1979. Even better,
in the crucial area of productivity, output per head in manufacturing
industry rose by 12% in the first quarter of 1982 over its level
at the end of 1980: it was 51% up over the average in 1979, which
was a peak year in the productivity cycle. Most important of all
the annual inflation rate in June fell to 9.2% and is on a firm
downward trend.
But though the pattern is more
th all the main economic forecasters
of u
Of course, much remains to be done.
hesitant than we would like to see,
envisage continuing gradual recovery of growth in 1982 and 1983.
The encouraging figures I have quoted do reveal very clearly how
much we have achieved so far in sharpening up productivity,
G
performance and competitiveness. The figures hide but reflect A
involved
is emerging
mach greater realism on the part of those concerned, a heightened
sense of the links between sensible pay settlements, productivity,
unemployment and the creation of lasting jobs. A successful
trading community such as you have here in Hong Kong needs no
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reminding of these links. But we have had to reforge the chain, ou
through our overall economic policies and the climate they create,
through our control of public spending and borrowing, through our
constant encouragement to management and unions to learn