CONFIDENTIAL
002556
MDHIAN 8168
9. Against the background of full employment, consumer spending should continue to grow steadily. Construction output is expected to pick up significantly, propelled by public sector activity on the major infrastructural projects.
10.
The restraint measures in China are focused mainly on excessive investment and speculative activities. The effect is Likely to be concentrated in Hong Kong's exports to China for its own use. Moreover, the impact is likely to be temporary in view of the Chinese Government's recent renewed emphasis on pursuing high economic growth.
11. The official forecast of consumer price inflation for 1993 as a whole has been revised further downwards to 8.5%, from the August forecast of 9%.
PATTEN
YYYY
ΜΑΙΝ
18
HKD
FED
NEWS D
NNNN
}
DISTRIBUTION
18
PS/MR GOODLAD
PS/PUS
MR HUM