THE ECONOMY IN 1987
1.
The trend begun in 1986 of strong export-led growth
continued through 1987. The sharp rise in our domestic exports and re-exports in turn boosted incomes and domestic demand. AS a result, Our gross domestic product (GDP) recorded a growth
rate of about 13% in real terms (2). Thus we have enjoyed two
consecutive years of double-digit growth (3).
8.
This remarkable economic performance has benefited
Hong Kong in a number of ways. First, the buoyant economic
conditions led to a substantial increase in capital investment and an active property market. Secondly, with the unemployment
rate staying at an historic low level of 1.8% during much of
1987, we had in effect full employment throughout the year.
Thirdly, wages and salaries rose rapidly, resulting in a
significant increase in personal incomes, even after allowing
for inflation. The community at large shared in the fruits of
our economic success.
(2)
Unless otherwise indicated all subsequent growth rates for the economy are in real terms. This growth rate for the GDP is a preliminary estimate. The growth
growth rates of the various major components of expenditure on the GDP in 1987 are as follows:
Private consumption expenditure
Government consumption expenditure
Gross domestic fixed capital formation
of which, in building and construction
in plant and machinery
Total exports of goods
Domestic exports Re-exports
Imports of goods
Net exports of services
Gross domestic product
/
10.8
4.7
15.2
6.6
27.3
33.0
23.2
45.9
31.7
29.4
13.6
(3) The provisional estimate of the growth rate of GDP in 1986 is 11.2%.
/9. At