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WEDNESDAY, OCTOBER 6, 1976
HONG KONG'S ECONOMY TO CONTINUE TO EXPAND
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THE GOVERNOR TODAY PREDICTED THAT HONG KONG'S ECONOMY WOULD CONTINUE TO EXPAND FOR THE REST OF THIS DECADE AT AN AVERAGE RATE OF AT LEAST SIX PER CENT PER ANNUM IN REAL TERMS.
SIR MURRAY TOLD THE LEGISLATIVE COUNCIL THAT 1976 WOULD BE A VERY GOOD YEAR FOR HONG KONG WHICH IS EXPECTING TO SEE AN INCREASE OF 25 PER CENT IN THE QUANTITY OF ITS EXPORTS AND OF SOME 16 PER CENT OR MORE IN THE GROSS DOMESTIC PRODUCT IN REAL TERMS COMPARED WITH 1975.
HE SAID: +IN THE FIRST HALF OF 1976, THE VOLUME WAS 36 PER CENT HIGHER THAN IN THE CORRESPONDING PERIOD OF LAST YEAR AND HAD FULLY RECOVERED THE GROUND LOST DURING THE RECESSION. +
WITH THE MANUFACTURING EMPLOYMENT IN JUNE THIS YEAR AT A RECORD BREAKING 750,000 AND REAL WAGES RATES IN MANUFACTURING IN THE FIRST HALF OF THE YEAR INCREASING AT AN ANNUAL RATE OF OVER 12 PER CENT, THE GOVERNOR SAID: +1 CAN NOW SAY WITH CONFIDENCE THAT IN TERMS OF INDUSTRIAL ACTIVITY, EMPLOYMENT AND LEVEL OF REAL INCOMES, OUR ECONOMY IS BACK ON COURSE FROM WHICH IT WAS KNOCKED BY THE RECESSION.+
HOWEVER, HE SAID, HONG KONG COULD NOT EXPECT ITS ECONOMY TO GO ON EXPANDING AT THE PACE OF THE LAST 12 MONTHS BECAUSE THE RECOVERY OF DEMAND IN ITS MAJOR MARKETS HAD BEEN INFLUENCED BY REPLENISHMENT OF STOCKS RUN DOWN DURING THE RECESSION.
+EVEN THOUGH THERE IS ROOM IN OUR OVERSEAS MARKETS FOR FURTHER RECOVERY IN CONSUMER DEMAND AND CAPITAL INVESTMENT, THE RATE OF EXPANSION WILL PROBABLY SLOW DOWN A LITTLE FROM NOW ON, SAID THE GOVERNOR.
LOOKING AHEAD TO 1977 AND BEYOND, SIR MURRAY SAID HONG KONG'S ECONOMIC PERFORMANCE IN THE LONGER TERM MUST DEPEND VERY LARGELY ON ITS OWN EFFORTS AS WELL AS ITS MAJOR MARKETS AND SOURCES FOR RAW MATERIALS,
HE SAID: +BETTER USE OF THE LABOUR FORCE THROUGH MORE TRAINING, MORE SKILLS AND THE PROVISION OF MORE PRODUCTIVE MACHINERY AND EQUIPMENT IS VERY MUCH IN OUR OWN HANDS. SO IS THE ADAPTABILITY OF OUR ECONOMY TO CHANGES IN DEMAND IN OVERSEAS MARKETS.+
ON THE DEVELOPMENT OF OVERSEAS MARKETS, SIR MURRAY SAID THERE WERE SIGNS THAT THE ECONOMIC POLICIES OF MOST MAJOR COUNTRIES IN THE WORLD WOULD CONTINUE TO BE STRONGLY
INFLUENCED BY FEAR OF INFLATION.
+ IF SO, THE GROWTH IN INTERNATIONAL TRADE MAY BE SLOWER IF SURER, HE ADDED, +NEVERTHELESS, SO LONG AS IT DOES CONTINUE TO GROW, AS WE CONFIDENTLY EXPECT IT WILL, HONG KONG'S INDUSTRY IS SUFFICIENTLY FLEXIBLE TO WIN THE SHARE THAT WILL KEEP OUR CAPACITY FULLY OCCUPIED.+
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