year as a whole (2). We have been helped, particularly in our
European markets and in Japan, by the depreciation of the Hong Kong dollar in line with the US dollar. This strong export performance is in sharp contrast to the decline of 5% recorded in 1985. Re-exports also picked up in the second quarter
1986, with increased re-exports of goods coming from China. The
growth rate of re-exports for 1986 was about 14% and that of retained imports about 13%. A virtual balance emerged on the
visible trade account.
of
9.
Private consumption expenditure firmed up in the latter
part of 1986, resulting in a growth rate of 7% for the year as
whole. Capital investment also showed a marked improvement,
growing by 7% in 1986 (3), after a decline of 28 in 1985. Expenditure on plant and machinery recorded an increase of about
There was a particularly welcome increase in such expenditure by manufacturers, reflecting greater activity in the
manufacturing sector, and confidence that this activity would
continue.
8%.
(2)
Unless otherwise indicated, all subsequent growth rate figures for both the economy and government expenditure are in real terms.
(3)
Building and construction
Plant and machinery
Real estate developers' margin
Transfer costs of land and buildings
0101
0.1
7.7
11.6
29.7
6.7
Gross domestic fixed capital formation
Retained imports of plant and machinery for use by manufacturers increased by about 26% in 1986.
3
/10. In