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have decelerated markedly since the beginning of the
year. On investment expenditure, retained imports of
capital goods showed much slower growth in the second
quarter than in the first quarter of this year.
5.
With the unemployment rate for June to August at
about 1.3%, the labour market is still generally tight.
But the latest indications are that it may have eased
slightly from the exceptionally tight situation at the
beginning of the year. The current inflation rate at the
consumer level is around 10%. As overall economic
activity continues to moderate inflationary pressures
should be reduced in due course.
6.
The political turmoil in China has undoubtedly
affected the Hong Kong economy. Its initial repercussions
were immediately reflected in the financial and property
markets, followed by the tourist-related sectors. Its
full implications for other sectors and the economy at
large will, however, take more time to filter through and
be reflected in the statistics. There has nonetheless
been some improvement lately, for instance in the property
sector.
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7.
On regular production activities, disruptions in
Hong Kong and in those processing units serving Hong Kong
in the Pearl River Delta area appear to have been
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