MEDITSDAY, FEBRUARY 25, 1973
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IN ADDITION, THE WEAKNESS IN DEMAND IN HONG KONG'S MAJOR OVERSEAS MARKETS WAS PARTICULARLY NOTICEABLE IN THE LATTER PART OF THE YEAR AND RESULTED IN A FALL IN THE ACTUAL VOLUME OF OUR EXPORTS OF SEVEN PER CENT OVER THE YEAR AS A WHOLE, INTERRUPTING A PROLONGED GROWTH TREND DATING FROM AT LEAST 1959.
PRIVATE CONSUMPTION EXPENDITURE DURING 1974 INCREASED BY 18 PER CENT IN MONEY TERMS, ONLY A LITTLE LESS THAN WAS FORECAST. GOVERNMENT CONSUMPTION EXPENDITURE, HOWEVER, INCREASED BY 22-1/2 PER CENT IN MONEY TERMS OR BY MORE THAN THE 14 PER CENT ANTICIPATED.
THE RAPID TURNROUND UNDERGONE BY THE WORLD ECONOMY, FROM BOOM IN 1973 TO RECESSION IN 1974, DROUGHT ABOUT A SHARP SLOWDOWN IN THE HONG KONG ECONOMY, THROUGH A SLACKENING DEMAND FOR OUR EXPORTS.
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HE SAID THE SAME FORCES WERE ALSO RESPONSIBLE FOR THE EASY SUPPLY POSITION AND THE FALLING PRICES OF MANY COMMODITIES. THUS WHILE MANUFACTURING EMPLOYMENT FELL BY 11 PER CENT IN THE 12 MONTHS ENDING DECEMBER 1974 AND MONEY WAGE RATES HARDLY ROSE AT ALL, CONSUMERS BEGAN TO FEEL THE BENEFIT OF STEADIER PRICES.
THE FALL IN DOMESTIC EXPORTS, IN QUANTITY TERMS, WAS ACCOMPANIED BY A REDUCTION IN THE QUANTITIES IMPORTED OF RAW MATERIALS, CONSUMER GOODS AND, TO AN EXTENT, FOODSTUFFS.
IN 1974, THE MONEY SUPPLY INCREASED AT ABOUT THE SAME RATE AS THE GROSS DOMESTIC PRODUCT. IN CURRENT PRICE TERMS
IN CURRENT PRICE TERMS, BY 12-1/2 PER CENT. ADVANCES AND LOANS FOR TRADE AND INDUSTRY INCREASED AT ABOUT THE SAME RATE AS IN 1973, BUT THEY LEVELLED-OFF IN THE SECOND HALF OF THE YEAR.
INTEREST RATES BEGAN TO FALL TOWARDS THE END OF THE YEAR, IN LINE WITH MOVEMENTS ADROAD. THIS HELPED TO SUPPORT STOCK MARKET PRICES WHICH HAD BEEN FALLING FOR MOST OF THE YEAR IN THE LIGHT OF GENERALLY UNFAVOURABLE SHORT-TERM WORLD TRADING PROSPECTS..
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