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education
activities is
under
overnment
in
coordination
with
preparation by the
the Hong Kong Nuclear
Hong
Kong
Investment
Company
VIII. PERFORMANCE OF THE ECONOMY
(a)
General Situation
42.
1986 saw
in
a marked upturn in the Hong Kong economy, led by a strong
recovery in domestic exports since March. Domestic
exports
grew by 15% in real terms, the first ten months of 1986, over the
same period last year, in contrast with a decline of 5% in 1985 as a
whole. This recovery was attributable partly to improved demand for
Hong Kong's products in many of its major overseas markets, and
partly to improved external competitiveness caused by the depreciation of the Hong Kong dollar against most major currencies,
in line with the depreciation of the US dollar under the linked
exchange rate system
first ten months of 1986 re-exports
For the
grew by 10% in real terms.
43.
in
In
The strong recovery
domestic exports has helped to
maintain employment at a high level and to
boost labour incomes
the period September
November 1986, the seasonally-adjusted
unemployment rate was 2.4% and the underemployment rate was 1.2%. Employment continued to grow particularly in the financial and other
business services sectors and in the distributive trades. Earnings
in most sectors increased significantly both in money terms and in
real terms
44.
as
In line with the improved economic conditions, private
consumption demand has also firmed up,
reflected by the
relatively high growth rates of retained imports of consumer goods
and of foodstuffs, at
11% and 10% respectively in real terms in the
first ten months of 1986.
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