T
2
6.
Comparing the first eleven months of 1991 with the same period in 1990, re-exports surged strongly by 27.9% in value terms while domestic exports recorded only a small growth of 1.5%. Meanwhile, imports increased considerably by 20.4%. A visible trade deficit of $10,908 million, equivalent to 1.6% of the value of imports, was recorded in the first eleven months of 1991.
7.
In real terms, re-exports registered a substantial growth of 26% in the first ten months of 1991 over the same period in 1990, while domestic exports remained virtually unchanged. Imports rose by 19% over the same period.
8.
Comparing the first eleven months of 1991 with the same period in 1990, domestic exports to China grew significantly. But domestic exports to Germany and the United Kingdom declined in recent months, after registering substantial increases in the first half of the year.
Domestic exports to Japan and the United States remained weak. Re-exports involving China in
involving China in both directions recorded substantial growth, partly supported by the continued expansion of outward processing activities in South China.
Labour market.
9.
The seasonally adjusted unemployment rate in the three months ending November, at 1.9% (provisional), was 0.3 of a percentage point lower than in the preceding three months. The underemployment rate, at 1.6% (provisional) in the three months ending November, was 0.1 of a percentage point higher.
Prices
10.
Inflation at the consumer level continued to moderate. The Consumer Price Index (A) rose by 11.0% in November over a year earlier, compared with increases of 11.5% in September and 11.3% in October. The slower increase in November was mainly due to a decrease in oil product prices and a moderate increase in vegetable prices.
Financial sector
11.
Local money market interest rates softened further during December. The 3-month Hong Kong dollar interbank rate, at 4% at end- December, was 3/8 of a percentage point lower than a month earlier. Meanwhile, the 3-month Eurodollar deposit rate decreased by 3/4 of a percentage point to 4 3/16%. The differential between the two rates thus narrowed to 3/16 of a percentage point in favour of the US dollar interest rate at end-December, from 9/16 of a percentage point at end- November.
12.
The various deposit rates administered by the Hong Kong Association of Banks and the best lending rate charged by the two note issuing banks remained unchanged during December. At the end of December, the savings, 3-month and 12-month deposit rates were 3 1/2%, 4 3/4% and 5 3/4% respectively. The best lending rate stood at 8 1/2%.