9.
A visible trade deficit of $1,515
million, equivalent to only 0.4% of the value of
imports, was recorded in the first nine months
of 1989. This compares with a deficit of $5,282
million, equivalent to 1.5% of the value of
imports, recorded in the same period last year.
10.
In line with the slow-down in overall
economic activity, domestic demand slackened
further during the third quarter. On
consumption, the volume of retail sales fell in
the third quarter over a year earlier, and the
rate of decline was even larger for retained
imports of consumer goods. On investment,
retained imports of capital goods also fell
significantly over the same period.
11.
The rate of inflation was still high.
Comparing the third quarter of 1989 with the
same quarter in 1988, the Consumer Price
Index (A) rose by 10.1%, the Consumer Price
Index (B) by 9.8%, and the Hang Seng Consumer
Price Index by 10.9%. The corresponding
increases in these three indices in the second
quarter were 10.4%, 9.9% and 11.0%. The
inflationary pressures were largely domestically
generated. Of the various components of the