WEDNESDAY, FEBRUARY 27, 1985
SECOND YEAR OF EXPORT-LED GROWTH
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IN 1984 THE HONG KONG ECONOMY EXPERIENCED THE SECOND CONSECUTIVE YEAR OF EXPORT-LED GROWTH DUE TO STRONG EXPANSION IN THE UNITED STATES AND IMPROVEMENTS ELSEWHERE, SIR JOHN BREMR IDGE TOLD THE LEGISLATIVE COUNCIL TODAY.
+EXPORTS TO CHINA EXPANDED RAPIDLY, AS ITS NEW ECONOMIC POLICY HAS ENHANCED BILATERAL TRADING OPPORTUNITIES, SAID SIR JOHN. HE POINTED OUT THAT IN REAL TERMS OUR DOMESTIC EXPORTS INCREASED OVERALL BY ABOUT 17 PER CENT, RE-EXPORTS BY ABOUT 30 PER CENT AND IMPORTS BY ABOUT 15 PER CENT. AT UNDER ONE PER CENT THE VISIBLE TRADE GAP WAS THE SMALLEST FOR MORE THAN 25 YEARSTM- EQUIVALENT TO LESS THAN TWO DAYS' IMPORTS.
+THE GENERAL INCREASE IN ECONOMIC ACTIVITY AND THE RETURN OF CONFIDENCE HELPED TO STIMULATE A RECOVERY IN PRIVATE INVESTMENT IN PLANT AND MACHINERY THROUGHOUT THE YEAR,+ SAID SIR JOHN.
MOST OF THE GROWTH OF 26 PER CENT REFLECTED A CATCHING UP ON TWO VERY POOR YEARS. HOWEVER, PRIVATE EXPENDITURE ON BUILDING AND CONSTRUCTION FELL BY 9.5 PER CENT IN REAL TERMS.
REFERRING TO THE PROPERTY MARKET, SIR JOHN SAID THAT APART FROM A HIGH TAKE-UP OF FINISHED PROPERTY, THE MARKET REMAINED SOFT, THOUGH THERE WERE SIGNS OF IMPROVEMENT TOWARDS THE END OF THE YEAR.
PRIVATE CONSUMPTION EXPENDITURE GREW BY FIVE PER CENT IN
REAL TERMS.
SIR JOHN SAID THAT PUBLIC SECTOR EXPENDITURE OVERALL DECLINED BY TWO PER CENT IN REAL TERMS, WHILE OVERALL THE GDP GREW BY 9.6 PER CENT IN REAL TERMS REPRESENTING A SIGNIFICANT IMPROVEMENT ON THE PREVIOUS YEAR'S 5.1 PER CENT.
REFLECTING THE CONTINUED RAPID EXPANSION IN EXPORTS AND THE RESULTING ACCELERATED GROWTH RATE OF THE ECONOMY, SIR JOHN SAID BOTH THE UNEMPLOYMENT RATE AND UNDEREMPLOYMENT RATE STAYED AT LOW LEVELS AND EARNINGS IN MOST SECTORS INCREASED IN REAL TERMS. IN THE FOURTH QUARTER THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE STOOD AT 3.8 PER CENT AND THE UNDEREMPLOYMENT RATE AT 0.8 PER CENT, REPRESENTING CLOSE TO FULL EMPLOYMENT. SIR JOHN ADDED THAT OUTPUT PER EMPLOYED PERSON ROSE BY 6.7 PER CENT.
HE SAID 1984 WAS THE YEAR IN WHICH THE HONG KONG ECONOMY VERY LARGELY GOT BACK ON TRACK.
+ECONOMIC GROWTH INCREASED, INFLATION FELL, UNEMPLOYMENT WAS LOW, CONFIDENCE RETURNED AND INVESTMENT BEGAN TO RECOVER, ALL IN ALL A WELCOME CONTRAST TO THE GLOOM OF 1982, WHICH STILL PERSISTED INTO MUCH OF 1983, HE SAID.
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