2
4.
The main updated forecasts are : 3%
for the growth rate in real terms of the GDP,
and 10% for the rates of increase in both the
GDP deflator and the Consumer Price Index (A).
5.
The latest GDP forecast reflects a
faster than expected deceleration in the third
quarter. As predicted, the rate of inflation
would remain high for a while before it begins
to ease.
6.
In the third quarter of 1989, domestic
exports fell by about 1% in real terms over the
same quarter in 1988. This compares with
increases of 6% in the first quarter and 2% in
the second quarter. Domestic exports to the
various major markets showed a mixed
performance.
Domestic exports to Japan
continued to grow rapidly, but domestic exports
to China decelerated markedly. While domestic
exports to the Federal Republic of Germany and
the United Kingdom continued to decline, the
fall in domestic exports to the United States
appeared to have stabilised somewhat. The
United States remained the largest market for
Hong Kong's domestic exports, but its share in
the total value fell from 33% in 1988 to 32% in
the first nine months of 1989.