17
in prices, as measured by
by the Consumer Price Index
(A), should be revised downwards to 3.5%, from the
budget forecast of 5%. Although the Hong Kong dollar
has weakened against most major currencies other than
the US dollar, the pressure on inflation is likely to
be dampened to some extent
extent by the generally soft world
commodity prices and by the depreciation of the
renminbi.
33.
T
The implications of the revised GDP forecast
are as follows. Economic growth in 1986 will continue
to be export-led in the second half of the year, with
the impetus coming from the recovery in domestic
exports. Domestic demand will show moderate growth
overall, with private sector demand expected
by 6% and public sector demand to show no change.
to grow
34.
For the labour force as a whole, the
unemployment rate has remained stable at a low level.
In the second quarter of this year the unemployment
rate and underemployment rate were 3.0% and 1.9%
respectively. This reflects effective full employment
and can be expected to continue.
/35. As the pace
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