WEDNESDAY, OCTOBER 10, 1979
7
TURNING TO THE PROSPECTIVE DEMAND FOR OUR PRODUCTS, SIR MURRAY SAID THE GROWTH IN OUR DOMESTIC EXPORTS TO THE UNITED STATES WOULD BE ONLY A MEAGRE THREE PER CENT THIS YEAR, REFLECTING THE SHARPER THAN EXPECTED SLOW DOWN IN THE GROWTH RATE OF THE UNITED STATES ECONOMY FROM FOUR PER CENT IN 1978 TO LESS THAN TWO PER CENT IN 1979. HOWEVER, AN UPTURN IN THE UNITED STATES GROSS DOMESTIC PRODUCT GROWTH RATE WAS EXPECTED TOWARDS THE SECOND HALF OF THE YEAR.
ON THE WEST GERMAN MARKET, SIR MURRAY SAID PRESENT FORECASTS POINTED TO A SLOWING DOWN IN THE GROWTH RATE OF THE ECONOMY OF THE FEDERAL REPUBLIC, FROM FOUR PER CENT THIS YEAR TO LESS THAN THREE PER CENT FOR NEXT YEAR. IF THIS SLOWING DOWN MATERIALISES, IT MAY HAVE IMPLICATIONS FOR US, HE SAID.
HONG KONG'S EXPORT PERFORMANCE TO THE UNITED KINGDOM THIS YEAR, HE SAID, WAS IMPRESSIVE DESPITE A SHARP SLOWING DOWN IN THE GROWTH RATE OF THE GROSS DOMESTIC PRODUCT OF UK FROM OVER THREE PER CENT IN 1978 TO ONLY HALF A PER CENT IN 1979. THIS IS PROBABLY BECAUSE CONSUMER DEMAND IN THE UK, THOUGH SLACKENING, IS STILL GROWING AT THE RATE OF OVER FOUR PER CENT. BUT THIS IS EXPECTED TO SLOW DOWN IN 1980, SO THE PRESENT GROWTH RATE OF EXPORTS TO THE UK SEEMS UNLIKELY TO CONTINUE.
0
BUSINESS COMMUNITY URGED TO HELP CURB INFLATION
*****
THE GOVERNOR, SIR MURRAY MACLEHOSE SAID TODAY (WEDNESDAY) THERE COULD BE NO RELAXATION IN OUR EFFORTS TO CONTAIN THE GROWTH OF DOMESTIC DEMAND AND INFLATION, AND CALLED ON THE PRIVATE SECTOR TO HELP ACHIEVE THIS GOAL.
REVIEWING HONG KONG'S ECONOMY IN HIS ADDRESS TO THE LEGISLATIVE COUNCIL, SIR MURRAY SAID WHILE SOME OF OUR ECONOMIC PROBLEMS WERE BEGINNING TO SUBSIDE, SOME PERSISTED. IN PARTICULAR, INFLATION, BOTH IMPORTED INFLATION AND DOMESTICALLY GENERATED INFLATION, IS RUNNING AT AN UNCOMFORTABLE RATE.+
HE SAID EXCESS OVERALL DEMAND STILL PERSISTED WITH CONSEQUENT PRESSURE ON PRICES. WITH WORLD PRICES ACCELERATING AT THE SAME TIME DUE, IN PART, TO SHARP INCREASES IN OIL PRICES, CONSUMER PRICES IN HONG KONG ARE NOW INCREASING AT AROUND 11 PER CENT. BUILDING AND CONSTRUCTION COSTS ARE INCREASING AT THE EXTRAORDINARY RATE OF NO LESS THAN 30 PER CENT TO 40 PER CENT.+
SIR MURRAY SAID IT MUST BE THE OBJECT OF GOVERNMENT AND BUSINESS COMMUNITY ALIKE TO PLAY THE IR PART IN MODERATING DEMAND BEFORE EXCESS IMPOSES ITS OWN PAINFUL REMEDY.+
FOR THE PRIVATE SECTOR, HE SAID, THIS INVOLVED THE FOREGOING OF SOME SHORT-TERM PROFIT FOR THE SAKE OF LONG-TERM STABILITY AND EVENNESS OF GROWTH.
/+THIS IS ...............