THURSDAY, NOVEMBER 27, 1980
STABLE AND EXPORT-LED ECONOMIC GROWTH
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HONG KONG'S ECONOMIC GROWTH SO FAR THIS YEAR HAS BEEN EXPORT-LED AND ASSOCIATED WITH A REASONABLE DEGREE OF STABILITY, ACCORDING TO THE GOVERNMENT'S THIRD QUARTER ECONOMIC REPORT RELEASED TODAY.
THE REPORT REVIEWS PRIMARILY EVENTS IN THE THIRD QUARTER OF 1980 AND BRINGS UP-TO-DATE THE ANALYSES IN THE HALF-YEARLY ECONOMIC REPORT PUBLISHED IN AUGUST.
IT POINTS OUT THAT ALTHOUGH THE GROWTH RATE OF DOMESTIC EXPORTS SLOWED DOWN CONSIDERABLY IN THE THIRD QUARTER, IT WAS SIGNIFICANTLY HIGHER THAN MIGHT BE EXPECTED IN VIEW OF THE ECONOMIC CONDITIONS PREVAILING IN HONG KONG'S MAIN MARKETS.
IT ALSO SUGGESTS THAT THERE APPEARED TO HAVE BEEN A REVIVAL IN THE GROWTH RATE OF DOMESTIC DEMAND. SO WHILE ECONOMIC GROWTH IN THE FIRST HALF OF THIS YEAR WAS PREDOMINANTLY EXPORT-LED, IT WAS PROBABLY LESS SO IN THE THIRD QUARTER.
THE REPORT EMPHASIZES THAT ECONOMIC GROWTH IN 1980 WAS ACCOMPANIED BY STABILITY. THE EASING OF DEMAND PRESSURE ON DOMESTIC RESOURCES WAS PARTICULARLY OBVIOUS IN THE LABOUR SECTOR AS A RESULT OF AN INCREASE IN THE SUPPLY OF LABOUR BECAUSE OF IMMIGRATION. THE RATE OF INCREASE IN BUILDING AND CONSTRUCTION COSTS ALSO SLOWED DOWN CONSIDERABLY DESPITE STRONG DEMAND FOR BUILDING AND CONSTRUCTION OUTPUT. BUT THE PRESSURE OF DEMAND IN THE PROPERTY SECTOR PERSISTED AND PROPERTY PRICES WERE INCREASING RAPIDLY.
ALTHOUGH ACTIVITY IN THE MANUFACTURING SECTOR HAD SHOWN SIGNS OF SLOWING DOWN IN THE THIRD QUARTER, THE FINANCIAL SERVICES SECTOR (PARTICULARLY THE STOCK MARKET) AND THE PROPERTY SECTOR CONTINUED TO EXPAND RAPIDLY.
THE ECONOMIC REPORT CONTAINS INDIVIDUAL CHAPTERS ON THE EXTERNAL SECTOR, THE FINANCIAL SECTOR, THE LABOUR SECTOR, AND PRODUCTION AND PRICES, PRECEDED BY A CHAPTER GIVING THE OVERALL VIEW.
EXTERNAL SECTOR
ON THIS SECTOR, THE REPORT POINTS OUT THAT THE GROWTH RATE OF DOMESTIC EXPORTS SLOWED DOWN CONSIDERABLY IN THE THIRD QUARTER.
THE GROWTH RATE OF IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES ALSO SLOWED DOWN, CONTRIBUTING TO A SLOWING DOWN IN THE GROWTH RATE OF IMPORTS. THE ENTREPOT TRADE HOWEVER CONTINUED TO GROW RAPIDLY.
WITH THE GROWTH RATE OF TOTAL EXPORTS HIGHER THAN THAT OF IMPORTS, THE VISIBLE TRADE +GAP+, THAT IS THE PROPORTION OF THE VALUE OF IMPORTS NOT COVERED BY THE VALUE OF TOTAL EXPORTS, NARROWED.
FINANCIAL