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11. DESPITE THESE PROBLEMS, WE EXPECT EXPORTS TO CONTINUE TO GROW, ALBEIT AT A LESS RAPID RATE THAN IN 1991. AN EARLY REVIVAL OF THE US ECONOMY WOULD MEAN A BETTER EXPORT PERFORMANCE.
12.
LOCALLY, CAPACITY CONSTRAINTS HAVE BEEN EASED TEMPORARILY BY A FASTER-THAN-EXPECTED INCREASE IN THE LABOUR SUPPLY DURING 1991 AND BY THE SHARP RISE IN INVESTMENT IN PLANT AND MACHINERY. BOTH CONSUMPTION AND INVESTMENT EXPENDITURES ARE EXPECTED TO INCREASE FURTHER, THEREBY UNDERPINNING THE GROWTH IN DOMESTIC DEMAND. A FURTHER BOOST WILL COME FROM THE IMPLEMENTATION OF THE NEW AIRPORT AND RELATED PROJECTS.
13. WITH THIS IMPETUS FROM BOTH HE EXTERNAL AND THE DOMESTIC SECTORS, THE GROWTH RATE OF HONG KONG'S GDP IN 1992 IS EXPECTED TO REACH 5.0 PERCENT IN REAL TERMS. THE PEOPLE OF HONG KONG SHOULD THEREFORE BE ABLE TO CONTINUE TO ENJOY RISING REAL INCOMES AND FULL EMPLOYMENT.
14.
HOWEVER, LOCAL INFLATIONARY PRESSURES MAY INTENSIFY. MUCH WILL DEPEND ON THE STATE OF THE ECONOMY, THE OVERALL RESOURCE SITUATION AND THE ADDITIONAL DEMAND ON THE CONSTRUCTION SECTOR
FROM THE NEW AIRPORT AND RELATED PROJECTS. FOR THE YEAR AS A WHOLE, CONSUMER PRICE INFLATION IS FORECAST AT 9. 5 PERCENT.
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