THE ECONOMY
Chart 12
12
Percent
Main inflation indicators (year-on-year rate of change)
Composite CPI
10
8
6
Consumer Price Index (A)
2
GDP deflator
0
-2
-4
QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1993
1994
|
1995
1996
Inflation eased distinctly further during the course of 1998.
1997
1998
56
following the reunification in July 1997. The Basic Law, as the constitutional law of HKSAR, gives a firm protection to this principle. The HKSAR shall continue to uphold the rule of law, maintain an effective executive-led government, sustain an efficient civil service, practise free enterprise and free trade, follow prudent financial management policies, and keep a simple and predictable tax system with low tax rate.
Hong Kong has long been well-known for its market-oriented economic policies. The law of the market advances that the fittest survives. Economic vitality is the key to maintaining competitiveness and engendering rising prosperity. Intelligent responses to market forces will lead the economy towards lower cost, higher efficiency, and better quality, thereby adding higher value to products and services. It is through the creation of better jobs and more rewarding business opportunities that Hong Kong people can aspire to enjoy higher income and better standard of living.
The government will continue to play an important enabling and facilitating role in providing a sound business environment. This involves, first, a sound legal and institutional framework in which business can operate smoothly, effectively and on a level playing field; secondly, quality education, training and retraining enabling people in Hong Kong to acquire the capability to enter into new and expanding fields; and thirdly, a good living environment conductive to the retention of talent to work in Hong Kong. In essence, it means building on Hong Kong's strengths as a business hub in Asia while actively pursuing new market niches, including taking full advantage of Hong Kong's unique role for development of the Mainland.