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My third general point is that this Government has shown its
confidence in the future of Hong Kong in the most practical way by
continuing its own investment in a major public works programme and in
far reaching plans for the future. If we seem cautious about some of
our more ambitious projects, it is because we have chosen to slow down
the growth rate of public expenditure. Given that currently we have for
the first time for many years a large deficit on budgetary account, any
other courge would be irresponsible. But we have not allowed what we
hope will be a short term situation to deflect us from our course.
Let me now describe our immediate situation as I see it and
the plans in hand for the future.
The Hong Kong economy, in common with most other economies,
has been adversely affected by the current world recession. Reflecting
the basic resilience of the economy these effects did not emerge until
1982, when domestic exports fell in real terms for the first time since
1974 and the growth rate of the Gross Domestic Product in real terms was
only 2.4%. This was a respectable rate of growth by world standards but
far less than has been usual in Hong Kong. However, with world econonio
recovery hopefully underway, our policy of allowing the economy to make
its own adjustments has again shown its worth. The Hong Kong economy
has already begun to recover. Exports are picking up, particularly to
the US, and the growth rate of the GDP for 1983 should show an improvement
on last year. The actual extent of the improvement will depend, as it
always has, on the growth rate of demand by the rest of the World for
the goods and services that Hong Kong provides. At the moment, I am
glad to say, the prospects look good for renewed growth.
Some sectors of our economy have suffered well-publicised
problems. The most obvious is the property market. The surge in economic
/growth that........