CONFIDENTIAL #2
GF 323
CRC INF 12/91
(CEC 11/91)
Summary of Major Developments in Hong Kong-China Economic Relations in the Second Quarter of 1991
(1)
China's
of
1991.
economy remained buoyant in the second quarter In the first half of 1991, China's gross
national product was estimated at Rmb 820.7 billion
and gross industrial output at Rmb 1,126 billion,
representing increases of 6.1% and 13.4% respectively
in real terms over the same period in 1990. Such
rapid growth rates could be attributed to a
monetary
the
loose
stance
and
continuously
government's support to. the loss-making state-owned
enterprises (paragraph 2).
(2) Partly because of the inefficiency of the state-owned
enterprises, the growth rates of output from the
bottleneck sectors like energy and certain key raw materials were again lagging significantly behind overall industrial growth. This shortfall was further exacerbated by the recent flooding in China (paragraph
(3)
(4)
5).
Both investment and consumption expenditure showed
significant growth in the first half of the year (paragraphs 7 and 8).
raw
Although the state-fixed selling prices for some key materials and basic necessities were raised in the
half of 1991, the overall rate of inflation
remained low at
first
1.8%.
The
government
was
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