L
SI
1985
MORE IMPROVEMENT IN UNEMPLOYMENT, INFLATION
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DOMESTIC EXPORTS DECREASED BY AN ESTIMATED ONE PER CENT IN REAL TERMS IN THE FIRST QUARTER OF 1985 COMPARED WITH THE SAME QUARTER LAST YEAR, WHILE OVER THIS PERIOD THE RATE OF INFLATION (AS MEASURED BY THE CONSUMER PRICE INDEX (A)) SLOWED DOWN TO 3.4 PER CENT, ACCORDING TO THE FIRST QUARTER ECONOMIC REPORT 1985 PUBLISHED TODAY.
THE SLOWING DOWN IN THE GROWTH RATE OF DOMESTIC EXPORTS WAS NOT UNEXPECTED, IN VIEW OF THE DECLINE IN RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES IN REAL TERMS IN THE FOURTH QUARTER OF 1984 AND IN THE FIRST QUARTER OF 1985 COMPARED WITH THE CORRESPONDING PERIODS A YEAR AGO.
DOMESTIC DEMAND, HOWEVER, CONTINUED TO GROW IN THE FIRST QUARTER OF 1985 COMPARED WITH THE FIRST QUARTER OF 1984. REFLECTING THIS, RETAINED IMPORTS OF CAPITAL GOODS GREW BY ABOUT 13 PER CENT IN REAL TERMS, AND RETAINED IMPORTS OF CONSUMER GOODS BY ABOUT NINE PER CENT.
THE REPORT NOTES THAT THE UNEMPLOYMENT SITUATION FOR THE LABOUR FORCE AS A WHOLE SHOWED A FURTHER IMPROVEMENT IN THE FIRST QUARTER OF 1985.
THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE IN THE FIRST QUARTER OF 1985 WAS 3.3 PER CENT, AGAINST 4.0 PER CENT IN THE FIRST QUARTER AND 3.8 PER CENT IN THE FOURTH QUARTER OF 1984, THE UNDEREMPLOYMENT RATE IN THE FIRST QUARTER OF THIS YEAR WAS 1.3 PER CENT, AGAINST 1.5 PER CENT IN THE FIRST QUARTER AND 0.8 PER CENT IN THE FOURTH QUARTER OF LAST YEAR.
THE DOWNTREND IN THE RATE OF INFLATION CONTINUED INTO THE FIRST QUARTER OF 1985. THE YEAR-ON-YEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX (A) WAS 3.4 PER CENT IN THE FIRST QUARTER OF 1985, COMPARED WITH 11.1 PER CENT IN THE FIRST QUARTER OF 1984 AND 4.8 PER CENT IN THE FOURTH QUARTER.
THE CONSUMER PRICE INDEX (B) WAS ON AVERAGE 3.9 PER CENT HIGHER IN THE FIRST QUARTER OF 1985 THAN IN THE FIRST QUARTER OF 1984, WHILE THE HANG SENG CONSUMER PRICE INDEX WAS 4.8 PER CENT HIGHER.
THE REPORT ASSESSES ECONOMIC DEVELOPMENTS IN THE FIRST QUARTER OF 1985 USING SUCH STATISTICS AS ARE AVAILABLE. IT ALSO UPDATES THE ANALYSIS OF THE ECONOMY WHICH WAS GIVEN IN THE 1984 ECONOMIC BACKGROUND PUBLISHED ON BUDGET DAY. APART FROM GIVING AN OVERALL VIEW, THE REPORT ALSO CONTAINS INDIVIDUAL CHAPTERS ON THE EXTERNAL SECTOR, THE FINANCIAL SECTOR, THE LABOUR SECTOR, ACTIVITY IN SELECTED SECTORS AND PRICES.
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