1
IN CONFIDENCE
2.3
The management of Hong Kong's economy is based on commitment
to market mechanisms and free enterprise. In 1982, the Gross
Domestic Product was an estimated HK$157,300 million (approx.
£15,000 million at 1982 rate of exchange) and per capita GDP was
HK$30,000 (approx. £2,860). In the ten years ending 1981 the growth
rate of the GDP in real terms was 10.1%. The growth rate of real
income per capita was affected by the high growth rate of population
in 1978-80. Nevertheless, as a result of a growth rate of 7.4% in
the 1970's, real income per capita by 1981 was more than twice that
in 1971, (giving Hong Kong the highest per capita income in Asia,
after Japan). Recently, the world recession has meant a reduction in growth, which was 2.4% in real terms in 1982, and is projected at
4% for 1983. Domestic exports are now picking up strongly (they
increased by 9% in real terms in the first half of 1983, compared to
1982) and this estimate will almost certainly prove conservative.
In mid-1983 the annual inflation rate was about 10% and the
seasonally adjusted unemployment rate was 4.4%.
2.4 Hong Kong is almost totally lacking in natural resources and,
relative to its population, is very short of usable land. The
manufacturing sector is therefore completely dependent on imported
raw materials, semi-manufactures and capital goods. Other sectors
of the economy are almost equally dependent on imported inputs. The
bulk of Hong Kong's requirements of foodstuffs and consumer goods is also imported. Thus the total value of Hong Kong's visible trading
transactions is just on twice the value of the GDP, and much more
than twice if invisible imports and exports are added in.
2.5 The value of Hong Kong's exports of goods in 1982 was
HK$127,385 million (approx. £12,100 million).
(approx. £12,100 million). This represents a
decline, in real terms, of 3% over 1981. Re-exports accounted for 34% and domestic exports for 66%. The principal domestic exports in
1982 were:
Textiles and Clothing
Watches and Clocks
Plastic Toys and Dolls
Radios
Domestic Machinery and Appliances
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40%
8.5%
7.5%
3.2%
3.2%