7
WEDNESDAY, OCTOBER 5, 1983
GOOD EXPORT PROSPECTS SEEN FOR 1984
***
HONG KONG SHOULD CONTINUE TO BENEFIT FROM IMPROVEMENTS LIKELY TO CONTINUE IN THE ECONOMIES OF ITS MAJOR EXPORT MARKETS IN 1984, THE GOVERNOR, SIR EDWARD YOUDE, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
DEVELOPMENTS SO FAR THIS YEAR INDICATED THAT AN EXPORT-LED RECOVERY WAS UNDERWAY, HE SAID.
+GIVEN NO UNFORESEEN EXTERNAL SHOCKS, DOMESTIC EXPORTS WILL PROBABLY GROW BY 11 PER CENT IN REAL TERMS AND, AS A CONSEQUENCE, HONG KONG'S GROSS DOMESTIC PRODUCT IS EXPECTED TO GROW BY BETWEEN 5.5 PER CENT AND SIX PER CENT IN 1983.
+THIS IS VERY ENCOURAGING AND ILLUSTRATES, ONCE AGAIN, THE RESILIENCE OF OUR ECONOMY AND ITS ABILITY TO RESPOND QUICKLY TO A REVIVAL IN DEMAND IN OUR MAJOR EXPORT MARKETS, SIR EDWARD SAID.
BUT HE ADDED, SOME EFFECTS OF THE 1982 RECESSION LINGER ON, AND PRIVATE SECTOR INVESTMENT AND REINVESTMENT - IN PLANT AND MACHINERY AND IN BUILDING AND PROPERTY HAVE BEEN AFFECTED BY ANXIETY ABOUT THE FUTURE. +
WHILE EMPLOYMENT IN THE BUILDING AND CONSTRUCTION INDUSTRY HAD FALLEN, REFLECTING THE DEPRESSED STATE OF THE PROPERTY MARKET, THÉ RECOVERY OF EXPORTS HAD CREATED MORE JOB OPPORTUNITIES IN MANUFACTURING INDUSTRIES, SIR EDWARD POINTED OUT.
FOR THE LABOUR FORCE AS A WHOLE, IN THE THREE MONTHS FROM MAY TO JULY THIS YEAR, THE UNEMPLOYMENT RATE WAS 3.9 PER CENT AND THE UNDEREMPLOYMENT RATE WAS 1.7 PER CENT, BOTH SUBSTANTIALLY BELOW THE PEAKS RECORDED EARLIER THIS YEAR, SIR EDWARD SAID.
THE RATE OF INFLATION, AS MEASURED BY THE CONSUMER PRICE
INDEX, IS NOW JUST OVER NINE PER CENT A YEAR.
*IT WOULD HAVE BEEN MUCH LOWER HAD IT NOT BEEN FOR THE DEPRECIATION OF THE HONG KONG DOLLAR OVER THE PAST 12 MONTHS.
+ IT MUST BE EXPECTED THAT THE RECENT SHARP FALL IN THE VALUE OF THE HONG KONG DOLLAR WILL CONTINUE TO HAVE AN ADVERSE EFFECT ON THE RATE OF INFLATION FOR THE REST OF THIS YEAR, HE SAID.
SIR EDWARD SAID THAT HE WOULD NOT DEAL IN HIS ADDRESS WITH THE QUESTION OF THE EXCHANGE VALUE OF THE LOCAL CURRENCY.
+BUT THIS DOES NOT MEAN THAT I DO NOT UNDERSTAND THE ANXIETIES OF THE COMMUNITY ON THIS ISSUE.
+ON THE CONTRARY, FOR ALL OF US IN GOVERNMENT WHO DEAL WITH THESE MATTERS, IT IS AN ISSUE OF DAILY ATTENTION, AND CONSTANT CONCERN.
/+BUT BECAUSE