dec
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--) 45,
of
Except for one or two temporary aberrations the exchange rate
US dollar has
the Hong Kong dollar against the
around
remained
en
stable
However,
the linked rate of HK$780 to US$1 during the year reflecting the depreciation of the US dollar, the effective exchange rate index of the Hong Kong dollar fell from 70.6 in end-December 1985 to 648 in end-December 1986. Pacelio)
-) 46.
year.
Despite the depreciation of the Hong Kong dollar, the rate inflation has remained low. Consumer prices increased by an average
over the of 207% in the first eleven months of 1986
same period last <P. Calio
of
-)
47.
months
As
result a
of the
recent
improved economic performance in
the forecast growth rate of the
the gross domestic product (GDP)
revised upward from 45% at the time
for 1986
the
for
when
was
the budget
1986 87 financial
year
was
announced
to
506%
in
and
even
this revised forecast
may prove
to be
in 1985 the estimated growth rate of
the
mid-September,
conservative.
In contrast,
GDP was 08% < Pa. 5°
-) (b)
Investment
<~ :)
>
48.
ا بالند
Capital investment in Hong Kong is mainly undertaken by the
role of The
private sector
the Hong Kong
Government
is largely
the
necessary infrastructure,
within
confined to ensuring the provision of
and the
which
returns
preservation
business private
environment investment
of
Hong
favourable a
seek enterprises can
In addition to
much providing
Kong Government seeks
to
maximise their
of the physical
to
ensure
that
infrastructure, the adequate support is provided to investors in the availability of new
technology and industrial
workforce, Lelio)
49.
half of 1986, retained
of
and well-trained a
well-educated
After declining in the second half of 1985 and in the first
in the of capital goods picked up imports Of particular note were the retained imports
third quarter of 1986.
of industrial machinery for use in the manufacturing sector, which
grew by 23% in real
in the first nine months of 1986, after a
terms
decline of 4% in 1985 as a whole. celo)
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