FC040/1616
no
consecutive quarters in 1982(6). During the twelve months ending May 1983, the prices of domestic exports increased by
68. This rate of increase was made up entirely of an increase
of 6% during the six months ending May 1983, as there was increase in the previous six months ending November 1982. The
main cause of the recent rising trend in the unit value index
of domestic exports was probably the depreciation during this
period of the Hong Kong dollar, particularly against the US
dollar. Many export orders, even if they are not from the
United States, are denominated in US dollars. The gradual
rise
in the import prices of raw materials and
semi-manufactures, which again were adversely affected by the depreciation of the Hong Kong dollar, was also a contributory
factor.
6.9
The over-supply of property, as evidenced by the high vacancy position in respect of most types of property,
has caused a further fall in
in property prices. Prices and
rentals of residential flats eased further in the first half,
although prices and rentals of prime property in convenient locations may have stabilised by mid year (paragraph 5.7). Reflecting the depressed demand in relation to supply, prices and rentals of both commercial and industrial property also declined in the first half (paragraphs 5.8 and 5.9).
(6)
/Consumer
The year-on-year rates of increase in the unit value
unit value index of domestic exports (%):
Year-on-year
rates of increase
1982
1983
22a& aâ
Q1 Q2*
10
8
5
2
4
6*
Note: (*) Estimated by using trade indexes available up to May 1983.
60