DETAIL
THE ECONOMY
4.
Hong Kong's external trade for the first nine months of 1988 has
continued to show significant growth. This has largely been based on the strong performance of re-exports, up 45 percent in real terms. Domestic exports have increased by 8 percent, significantly
less than in 1987.
5.
Unemployment, at 1.3 percent, was an historic low in
November. The labour market continues to be extremely tight. It is
likely that the average rate of consumer price inflation for 1988 will be close to the forecast 7.5 percent, compared with 5.5 percent for 1987. But wages are still keeping ahead of inflation.
This suggests
6. Land prices have been buoyant. An auction on 29 November attracted bids significantly above the upset prices. that developers expect prices and rentals, particularly for
commercial property, to continue to rise.
7. Investment remained strong into the third quarter of 1988.
Retained imports of captial goods grew by 14 percent in real terms
in the first nine months of the year compared with the same period
in 1987. Construction work, particularly on private sector projects, has remained intensive. This is an important indicator of
confidence.
LEGCO
8.
19 new appointed and elected members joined the Legislative
Council in October. They have taken time to become accustomed to
the practices and procedures of the Council. But the mood of the Council has been pragmatic and businesslike. Two major debates have
been held (on Expo 97 and the third report of the Education
Commission) both were conducted responsibly. Members concerns this
session have been primarily on domestic issues. The problem of Vietnamese refugees, and hope of greater assistance in resolving it,