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MONDAY, SEPTEMBER 11, 1978
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CONTINUED ECONOMIC GROWTH IN 1978
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THE GROWTH RATES OF BOTH EXPORTS AND RE-EXPORTS PICKED UP DURING THE FIRST HALF OF 1978 BUT DOMESTIC DEMAND IS STILL GROWING MORE RAPIDLY THAN EXPORTS. THIS IS SPELT OUT IN THE GOVERNMENT'S HALF-YEARLY ECONOMIC REPORT RELEASED TODAY. THE REPORT, WHICH PRIMARILY REVIEWS EVENTS IN THE FIRST HALF OF 1978, WILL BE SHORTLY ON SALE.
THE REPORT POINTS OUT THAT WITH UNEMPLOYMENT ALREADY AT A LOW LEVEL DURING 1977, DEVELOPMENTS IN THE FIRST HALF OF 1978 HAVE LED TO A FURTHER TIGHTENING OF THE LABOUR MARKET WITH WAGES
INCREASING RAPIDLY+,
THE UNEMPLOYMENT RATE DROPPED FROM 4.1 PER CENT IN SEPTEMBER 1977 TO ONLY 3 PER CENT IN MARCH 1978, AND THERE WAS A GENERAL SHORTAGE OF LABOUR, PARTICULARLY IN THE MANUFACTURING SECTOR. AVERAGE DAILY WAGE RATES (INCLUDING FRINGE BENEFITS) IN THE MANUFACTURING SECTOR WERE 6 PER CENT HIGHER IN REAL TERMS IN MARCH 1978 THAN IN SEPTEMBER 1977 AND 9 PER CENT HIGHER THAN IN MARCH 1977.
THE REPORT INDICATES THAT THE IMPROVEMENT IN EXPORT PERFORMANCE SEEN IN THE FIRST HALF OF THE YEAR IS LIKELY TO CONTINUE IN THE SECOND HALF. HOWEVER, BECAUSE OF THE TIGHT LABOUR MARKET AND THE ALREADY HIGH RATES OF UTILISATION OF QUOTAS FOR TEXTILES AND CLOTHING AND THEIR LIMITED GROWTH PROVISIONS, A SIGNIFICANT UPSURGE IN THE IMMEDIATE FUTURE APPEARS REMOTE.
THE REPORT SHOWS THAT THE VALUE OF DOMESTIC EXPORTS IN THE FIRST HALF OF THE YEAR WAS HK$17,468 MILLION, 11 PER CENT HIGHER THAN IN THE CORRESPONDING PERIOD A YEAR AGO, AS EXPORT PRICES WERE ON AVERAGE 3 PER CENT HIGHER, THE QUANTITY OF EXPORTS WAS ABOUT 7 PER CENT HIGHER, WHICH WAS SOMEWHAT HIGHER THAN THE 5 PER CENT GROWTH RATE IN THE QUANTITY OF DOMESTIC EXPORTS FOR 1977 OVER 1976.
THE REPORT ALSO INDICATES THAT THE ACCELERATION IN THE RATE OF GROWTH OF DOMESTIC EXPORTS IN THE FIRST HALF OF 1978 WAS MAINLY DUE TO HIGHER EXPORTS OF TEXTILES AND CLOTHING. FURTHER, RE-EXPORTS GREW RAPIDLY IN THE FIRST HALF OF 1978, BEING 29 PER CENT HIGHER IN VALUE TERMS THAN IN THE FIRST HALF OF LAST YEAR.
THE REPORT SHOWS THAT THE VALUE OF IMPORTS IN THE FIRST HALF OF 1978 WAS HK$28,254 MILLION, BEING 21 PER CENT HIGHER THAN IN THE FIRST HALF OF 1977. AS THE IMPORT UNIT VALUE INDEX INCREASED BY ABOUT 4 PER CENT DURING THE FIRST FIVE MONTHS OF THE YEAR, THE QUANTITY OF IMPORTS IN THE FIRST HALF OF THIS YEAR WAS ESTIMATED TO BE ABOUT 15 PER CENT HIGHER THAN IN THE CORRESPONDING HALF OF 1977.
THE REPORT NOTES THAT THE RAPID GROWTH RATE OF IMPORTS WAS MAINLY DUE TO THE STRONG DEMAND FOR CONSUMER GOODS. AND FOR RAW MATERIALS AND SEMI-MANUFACTURES, ALTHOUGH IT WAS ALSO PARTLY DUE TO AN ACCELERATION IN THE GROWTH RATE OF RE-EXPORTS.
/THE TOTAL