10
19.
per cent
So far this year the Hong Kong economy has done better than we expected. In the first half of the year
per cent domestic exports rose by 27 and re-exports by 49
compared with the same period in 1986. Domestic demand
was strong in terms both of consumption and investment,
and the property market has been active. Particularly welcome has been the continuing growth of investment in plant and machinery
an essential prerequisite for expanding our industry and increasing its
increasing its efficiency. Overall, we expect the growth rate of our gross domestic product in 1987 to reach 12in real terms cent This would
percen be even better than the high figure of 11 achieved last year and would be a very encouraging result.
percent
20.
Internally, the buoyancy of the economy has
led to a sharp tightening of the labour market. per cent Unemployment has fallen to a record low of 1.8 and
percent
12 underemployment to 1' In the twelve months ending March 1987, the earnings of workers in manufacturing and
per cent service employment rose by an average of 12 in money
per cent terms (or in real terms). There are indications that
the rate of increase has accelerated over the last six
Our workers are thus sharing in the general
months.
prosperity.
/21.
There