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D.
HONG KONG ECONOMY
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The economy is performing exceptionally well. There was an estimated growth in GDP in 1987 of about 12% compared with 11% for
1986.
Domestic exports increased in real terms by 16% in 1986 and by 27% in the first half of 1987 as compared with the same period in 1986. The equivalent figures for re-exports are 14% and 49%.
The annual inflation rate is expected to rise from 5.4% to
around 6% by the end of the financial year.
It is too early to estimate the effect of the fall in stock market prices on Hong Kong but growth in 1988 is unlikely to be as
high as in 1986 and 1987.
Property prices remain strong.
The Hong Kong Government have in hand or under planning an impressive number of major public projects including a third university, a light rail system in Tuen Mun and Yuen Long, two new container terminals, two 1600 bed hospitals, major reclamation in Hung Hom and Aldrich Bay, and a road tunnel link between Tsuen Wan and Sha Tin. In addition the private sector is constructing a
second tunnel under the harbour and six consortia are competing for
the right to construct a second road tunnel linking Kowloon and the
New Territories.
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