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+THE GOVERNMENT IS COMMITTED TO PROVIDING THE INFRASTRUCTURE NECESSARY FOR THE FUTURE OF HONG KONG. CHANGING ECONOMIC AND FISCAL CIRCUMSTANCES MAY AFFECT THE TIMING OF THE INVESTMENT PROGRAMMES, BUT THE COMMITMENT REMAINS, HE SAID.
+BETWEEN 1980 AND 1984 GROSS DOMESTIC FIXED CAPITAL FORMATION GREW AT FOUR PER CENT PER ANNUM IN REAL TERMS. I AM CONFIDENT THAT, BARRING UNFORESEEN SHOCKS, THE GROWTH RATE OF INVESTMENT DUR LNG THE REST OF THE 1980S WILL BE AT LEAST AS HIGH AS THIS, HE ADDED.
COMMENTING ON GROWTH RATE, SIR JOHN SAID IN THE NEXT FIVE YEARS PRIVATE CONSUMPTION EXPENDITURE COULD BE EXPECTED TO GROW AT AN AVERAGE ANNUAL GROWTH RATE IN REAL TERMS SIMILAR TO, IF NOT GREATER THAN, THE EIGHT PER CENT RECORDED BETWEEN 1980 AND 1984, GIVEN GOOD GROWTH RATES IN THE OTHER EXPENDITURE COMPONENTS OF THE GDP.
+THIS GROWTH RATE, ALTHOUGH HIGH BY WORLD STANDARDS, IS ON THE LOW SIDE COMPARED WITH EARLIER EXPERIENCE, HE SAID.
THE AVERAGE ANNUAL GROWTH RATE FOR THE 10 YEARS BETWEEN 1975 AND 1984 WAS OVER NINE PER CENT.
+THE REAL GROWTH RATE OF PUBLIC SECTOR RECURRENT EXPENDITURE IN THE REST OF THE 1980$ WILL, AS ALWAYS, BE THE OUTCOME OF A COMPROMISE BETWEEN DEMANDS FOR DESIRABLE ADDITIONAL EXPENDITURE AND THE AVAILABILITY OF FUNDS, THEMSELVES DEPENDENT ON THE PREVAILING ECONOMIC CONDITIONS, HE SAID.
+HOWEVER, GIVEN THE GOVERNMENT'S COMMITMENT TO PROVIDE SUFFICIENT RESOURCES TO PERMIT FULL USE TO BE MADE OF THE STEADILY INCREASING INFRASTRUCTURE PROJECTS AND THE STRONG TENDENCY FOR INCREASED PROSPERITY TO BE ACCOMPANIED BY DEMANDS FOR EXPANDED AND IMPROVED PUBLIC SERVICES, I EXPECT FURTHER STEADY GROWTH IN EXPENDITURE BUT WITHIN THE CONFINES OF BALANCED BUDGETS,+ HE ADDED.
GIVEN THE LIMITED SCOPE IN HONG KONG FOR SUBSTITUTING LOCALLY-PRODUCED GOODS FOR IMPORTS, THE GROWTH RATE OF IMPORTS OVER THE REST OF THE 1980S WOULD REFLECT THE GROWTH RATE OF FINAL DEMAND.
COMBINING THE GROWTH RATES OF THE VARIOUS EXPENDITURE COMPONENTS OF THE GDP AND MAKING ALLOWANCE FOR LIKELY CHANGES
IN THE SUPPLY SIDE COMPONENTS SUGGESTED THAT THE GROWTH RATE OF THE GDP IN REAL TERMS IN THE SECOND HALF OF THE 1980'S SHOULD ROUGHLY IN LINE WITH THAT IN THE FIRST HALF, THAT WAS TO SAY ABOUT 7.5 PER CENT PER ANNUM.
+ BUT ROUGHLY MEANS ROUGHLY; THIS IS A HEROIC GUESS, SIR JOHN CAUTIONED.
/ON INFLATION,