THURSDAY, SEPTEMBER 30, 1983
THUS BUSINESS THAT WAS AT LEAST PARTLY BEING CARRIED ON OUTSIDE HONG KONG IS NOW BE ING TRANSACTED ENTIRELY WITHIN HONG KONG AND THE FOREIGN CURRENCY DEPOSIT BASE OF THE MONETARY SECTOR HAS BEEN STRENGTHENED.
HE SAID THAT THE DIFFERENTIAL BETWEEN US DOLLAR AND HONG KONG DOLLAR INTEREST RATES HAS BEEN WIDENING RECENTLY. ALTHOUGH US DOLLAR/INTEREST RATES HAVE BEEN FALLING, HONG KONG DOLLAR RATES HAVE BEEN FALLING EVEN FASTER.
EARLIER THIS YEAR, THE HIGH INTEREST RATE THOUGH PLAYING AN ANTI-INFLATIONARY RÓLE → WAS CAUSING DIFFICULTIES TO VARIOUS SECTORS OF THE ECONOMY.
+THUS I WELCOME THE RECENT FALLS, HE SAID.
BUT HE RECOGNISED THAT INTEREST RATES ARE STILL HIGH IN BOTH REAL AND NOMINAL TERMS RELATIVE TO THE IR LEVELS PRIOR TO THE PAST TWO OR THREE YEARS. AS A RESULT AND ALTHOUGH THE RELIEF IS WELCOME MANY INDIVIDUALS AND BUSINESSES ARE STILL UNDER PRESSURE.
DESPITE THE SLOWER-THAN-EXPECTED GROWTH RATE OF THE ECONOMY AND A FALL IN THE AVERAGE NUMBER OF HOURS WORKED, THE MEASURED RATE OF UNEMPLOYMENT HAS RISEN ONLY SLIGHTLY.
AT 3.5 PER CENT IN MARCH THIS YEAR, UNEMPLOYMENT WAS LOWER THAN A YEAR BEFORE WHEN IT WAS 4.1 PER CENT, AND ONLY SLIGHTLY HIGHER THAN THE RATE IN DECEMBER 1981 OF 3.1 PER CENT.
+ IN HONG KONG WE RECKON THAT ANY RATE BELOW THREE PER CENT REPRESENTS FULL EMPLOYMENT, BUT I ACKNOWLEDGE A DEGREE OF RESTRICTED WORKING, WITH LOWER EARNINGS FOR SOME, HE ADDED.
DEALING WITH PRICES, MR BREMRIDGE SAID THE SLOWDOWN IN THE RATE HE FORECAST IN THE BUDGET WAS OCCURRING.
THE INCREASE IN THE CONSUMER PRICE INDEX BETWEEN JULY 1981 AND JULY 1982 WAS 11 PER CENT COMPARED WITH 15 PER CENT FOR THE SAME PERIOD A YEAR EARLIER. THIS MARKED DOWNWARD TREND SHOULD CONTINUE.
+ INFLATION IS A CURSE, AND I AM PLEASED THAT OUR EFFORTS TO REDUCE IT ARE MEETING WITH A DEGREE OF SUCCESS, HE SAID.
MR BREMRIDGE SAID THAT THE SLUGGISH STATE OF THE ECONOMY HAD INEVITABLY AFFECTED GOVERNMENT REVENUES. THOUGH IT WAS TOO EARLY TO ESTIMATE ACCURATELY THE REVENUE AND EXPENDITURE OUTTURN FOR THE YEAR, LAND SALES REVENUE HAD BEEN BELOW ORIGINAL EXPECTATIONS, AND IT SEEMED LIKELY THAT REVENUE COLLECTIONS FROM OTHER SOURCES AFFECTED BY THE CURRENT RECESSION, SUCH AS EARNINGS AND PROFITS TAX, WOULD BE SOMEWHAT LOWER THAN FORECAST.
+ IN CONSEQUENCE ANY SURPLUS MUST BE MODERATE, AND INDEED AT PRESENT A BREAKEVEN RESULT SEEMS INDICATED. I WOULD BE RELIEVED TO SEE SUCH AN OUTCOME, WHICH MIGHT BE UNIQUE IN THE WORLD,+ THE FINANCIAL SECRETARY SAID.
'RECALLING THAT