CONFIDENTIAL #3
6
7.
(c) Retained imports of industrial
machinery for use in the
manufacturing sector
The growth rate of retained imports of
industrial machinery for manufacturing use in
the second quarter of 1989, at about 6%, was slightly lower than the increase of 7% recorded
in the first quarter. The corresponding growth
rate for 1988 as a whole was 19%. The marked
deceleration in growth in the first half of 1989
for this category of investment reflected the
cautious attitude adopted by local manufacturers
in the face of a slackening domestic export performance. In real terms, domestic exports grew by only about 4% in the first half of
1989. Investment intentions of manufacturers
were further weakened by the events in China,
but the full effect will take some time to be
reflected in the respective retained imports
figures.
8.
(d)
Retained imports of capital
goods other than for
manufacturing use
In view of the heterogeneous nature of
these retained imports, the changes in real terms are not sufficiently reliable to be quoted
publicly. The series is included merely to provide a rough indication of trend. Retained imports of capital goods other than for manufacturing use grew by about 7% in the second
quarter of 1989, representing a sharp
deceleration from the increase of 22% recorded
in the first quarter. The corresponding growth
rate for 1988 as a whole was 16% (Table 2).
CONFIDENTIAL * *