1

Demand for and supply of domestic resources

1.4

(paragraph

net

The growth rate of the supply of labour

4.3) has slowed down under the influence of less

immigration and of a falling labour force participation rate.

The growth rate of the demand for labour has also been slowing

down (paragraph 4.4). Statistics are likely to show that

unemployment might have been slightly higher than in the fourth quarter of last year (paragraphs 4.1 and 4.2), an increase that is almost certainly seasonal.

1.5

relative

shift

in

the

sector to

the fourth

did not

Most probably, the

distribution of

of employment from

from the manufacturing

the tertiary services sector, which started in

quarter of 1981 when manufacturing employment increase, has continued into the first quarter of

(paragraph 4.5). There is no information yet to assess to what extent wages for manufacturing workers have been affected

(paragraph 4.10).

1.6

this year

In the land and property markets, prices generally continued to fall (paragraphs 5.4 to 5.6 and paragraph 5.11).

The stock market was generally bearish (paragraph 3.15), reflecting conditions in the land and property markets.

Inflation and the monetary aggregates

1.7

As the demand for domestic resources and the supply

of them are such that their influence on the rate of increase

in prices must be favourable, the rate of

rate of inflation eased in

the first quarter (paragraph 6.1). The easing of inflation elsewhere in the world, coupled with the strengthening of the exchange value of the Hong Kong dollar (paragraph 3.14) partly result of stable local interest rates (paragraph 3.13),

also contributed.

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