tet
The trend of slower growth in domestic exports began towards the end of last year. In the first quarter of this year, the growth rate of domestic exports and also of retained imports has continued to slow down. These trends suggest that the growth rate of the economy is indeed slackening. Thus, despite continued growth in the US economy and in our other markets at present, it would be premature
premature for me to consider revising my forecasts for either GDP growth or inflation.
گھر کا عات
tenderated States,
Over the longer-term, the link between the US dollar and the Hong Kong dollar should mean that there is a
is a tendency,
for the inflation rate in Hong Kong
in Hong Kong to follow that in the although there may be significant deviations from time to time. cent The US inflation
inflation rate is currently around 4) and tending to
rise, but if the US
down economy slows
in 1989 or 1990 as
expected, the inflation rate there should fall again. Thus,
inflation in Hong Kong can also be expected to fall in due
5.5 So,
the Medium the assumption of inflation for Range Forecast might well turn out to be pessimistic.
cent course.
tet f
62.
Sir,
The
Nevertheless, ¡I accept that inflation remains a concern. Dr. Conrad Lam asked what Government was doing to avoid aggravating inflation.
open, free market nature of Our economy means that there is little Government can do to restrain inflation beyond seeking to ensure that its own spending and revenue-raising activities do not add to inflationary
pressures.
is never easy
to achieve but the caution
underlying my budgetary strategy was partly motivated by a desire to ensure that we did not add to inflationary pressures. The message is clear: in present circumstances, there is little or no room for further reductions in
spending.
This
Significant taxation or increases
л
in
L
/REVISED
:
1
}