WEDNESDAY, SEPTEMBER 17, 1986
FS REVISES GDP FORECAST UPWARDS
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THE FORECAST GROWTH RATE OF THE GROSS DOMESTIC PRODUCT (GDP) FOR 1986 HAS BEEN REVISED UPWARDS TO ABOUT 5-1/2 PER CENT, FROM A BUDGET FORECAST OF 4-1/2 PER CENT, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID THIS (WEDNESDAY) EVENING.
MR JACOBS WAS GIVING A MID-YEAR REVIEW OF THE ECONOMY IN A SPEECH TO THE HONG KONG SOCIETY OF SECURITY ANALYSTS.
HE SAID HE WAS PLEASED TO NOTE THAT THE PERFORMANCE OF THE ECONOMY SO FAR THIS YEAR WAS GENERALLY AT LEAST AS GOOD AS THE BUDGET PREDICTIONS.
DOMESTIC EXPORTS HAD RECOVERED SIGNIFICANTLY, UNEMPLOYMENT WAS LOW, AND INFLATION WAS ONLY MODERATE.
CONSISTENT WITH THE RECOVERY IN DOMESTIC EXPORTS, THERE HAD BEEN A SHARP INCREASE IN RETAINED IMPORTS OF INDUSTRIAL MACHINERY.
THE LINKED EXCHANGE RATE SYSTEM CONTINUED TO WORK WELL. THE DEPRECIATION OF THE HONG KONG DOLLAR, DUE TO ITS LINK WITH THE U.S. DOLLAR, HAD ENHANCED THE TERRITORY'S INTERNATIONAL COMPETITIVENESS WITHOUT CREATING UNDUE PRESSURE ON ITS DOMESTIC INFLATION.
+1 WISH TO REPEAT THAT THE GOVERNMENT HAS NO INTENTION OF TAMPERING WITH EITHER THE PRESENT LINKED EXCHANGE RATE SYSTEM OR THE PRESENT LINKED RATE, HE ADDED.
MR JACOBS NOTED THAT THE NEW BANK ING ORDINANCE, DESIGNED TO STRENGTHEN THE PRUDENTIAL SUPERVISION OF BANKS AND DEPOSIT-TAKING COMPANIES, HAD COME INTO EFFECT AT THE BEGINNING OF THE MONTH.
+1 MUST, HOWEVER, STRESS THAT THE PRIMARY RESPONSIBILITY FOR THE SAFETY AND SOUNDNESS OF INDIVIDUAL INSTITUTIONS LIES WITH THE DIRECTORS AND MANAGEMENT, NOT WITH SUPERVISORS. +
+ON OCCASIONS THE SUPERVISORY AUTHORITY MAY NEVERTHELESS FIND IT NECESSARY TO EXERCISE HIS POWERS OF INTERVENTION, IF THE STABILITY OF THE BANKING SECTOR, AND OF THE COMMUNITY, IS THREATENED, HE SAID.
ON GOVERNMENT SUPPORT FOR INDUSTRY, MR JACOBS SAID HE BELIEVED THAT THE PRESENT POLICY OF FACILITATING THE ACQUISITION AND DISSEMINATION OF USEFUL TECHNOLOGY THROUGH THE PROVISION OF INDUSTRIAL SUPPORT SERVICES, THE PROMOTION OF INWARD INDUSTRIAL INVESTMENT AND THE PROVISION OF ADEQUATE MANPOWER TRAINING, SHOULD CONTINUE.
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