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FRIDAY, SEPTEMBER 16, 1983
+1 SHALL NOT, HOWEVER, HESITATE TO BORROW IF EVER THE
UNDERTAKING OF A CAPITAL PROJECT, WHICH WILL IN ITSELF BE PROFITABLE TO THE COMMUNITY, SO INDICATES.
+1N TODAY'S WORLD, IT IS REFRESHING TO BE LARGELY DEBT FREE WITH CONSIDERABLE FISCAL RESERVES, HE SAID.
ON THE BASIS OF THE PERFORMANCE IN THE FIRST FIVE MONTHS, SIR JOHN ESTIMATED THAT EXPENDITURE ON THE CONSOLIDATED ACCOUNT WOULD BE $41.2 BILLION, A DECREASE OF $1.3 BILLION OVER THE BUDGET ESTIMATE.
STRESSING THAT THERE HAD BEEN NO CUTBACK IN PUBLIC SPENDING, SIR JOHN SAID, AT PRESENT THERE IS AN OUTSTANDING COMMITMENT. I REPEAT COMMITMENT, OF ABOUT $24.5 BILLION IN RESPECT OF PUBLIC WORKS PROJECTS IN HAND.
+THIS REPRESENTS A HUGE FORTHCOMING INVESTMENT IN SOCIAL AND ECONOMIC INFRASTRUCTURE AND ILLUSTRATES THE GOVERNMENT'S FIRM INTENTION OF INVESTING VIGOROUSLY FOR THE FUTURE.+
ON THE BASIS OF THE ECONOMIC PERFORMANCE IN THE FIRST HALF OF THIS YEAR AND THE GENERALLY IMPROVING ECONOMIC PROSPECTS OF HONG KONG'S MAJOR TRADING PARTNERS, SIR JOHN REVISED THE FORECAST GROWTH RATE OF THE GDP FOR 1983 FROM FOUR PER CENT TO BETWEEN 5.5 PER CENT AND SIX PER CENT.
+THIS REPRESENTS MY BEST ESTIMATE FOR OUR ECONOMY ON THE BASIS OF THE INFORMATION NOW AVAILABLE. IN OTHER CURCUMSTANCES IT WOULD HAVE BEEN HIGHER, HE SAID.
*WITH A FORECAST INCREASE IN THE GDP DEFLATOR OF EIGHT PER CENT, THE REVISED FORECAST OF EXPENDITURE ON THE GDP AT CURRENT PRICES IS ABOUT $180 BILLION. 1983 GDP AT CURRENT PRICES IS NOW FORECAST TO BE ABOUT $34 000 A HEAD, REPRESENTING AN ANNUAL GROWTH RATE OF 12 PER CENT IN MONEY TERMS OR FOUR PER CENT IN REAL TERMS,+ SIR JOHN SAID.
GROWTH RATES OF THIS NATURE, HE ADDED, WOULD CLEARLY RE- ESTABLISH HONG KONG'S ENVIABLE RECORD.+
GROWTH WOULD BE EXPORT-LED, WITH DOMESTIC EXPORTS NOW BEING FORECAST TO GROW BY 11 PER CENT IN REAL TERMS THIS YEAR, AS COMPARED WITH HIS BUDGET FORECAST OF FIVE PER CENT, SIR JOHN SAID.
AS THE GROWTH RATE OF RE-EXPORTS RECOVERED LESS RAPIDLY THAN EXPECTED IN THE FIRST HALF, HE ADJUSTED THE FORECAST GROWTH RATE IN THIS SECTOR FROM 12 PER CENT TO NINE PER CENT.
THUS TOTAL EXPORTS ARE FORECAST TO GROW BY 10 PER CENT IN REAL TERMS, AGAINST THE BUDGET FORECAST OF SEVEN PER CENT.
HE REVISED THE GROWTH RATE OF IMPORTS IN REAL TERMS FROM SEVEN PER CENT TO EIGHT PER CENT.
/FOR 1983