REPRESENTATIVE GOVERNMENT
CONFIDENTIAL
The Secretary of State is already aware of the background.
ECONOMY
Following a revival in economic activity particularly during
the latter part of the year, domestic exports achieved an overall
growth rate of 16% in 1986. In his recent budget speech, the Hong
Kong Financial Secretary forecast that domestic
exports would
continue to grow during 1987 albeit at a slower rate and that a GDP
growth rate of 6응 would be achieved during the year. Capital investment is expected to
to grow by approximately 9%. Inflation is forecast to rise slightly to around 6% while the unemployment rate
of under 3% is expected to remain constant.
CONFIDENTIAL