WEDNESDAY, MARCH 2, 1988
IMMEDIATE PROSPECTS FOR ECONOMY GOOD, SAYS FS
*
ALMOST ALL THE ECONOMIC INDICATORS SHOW THAT HONG KONG HAS DONE PROSPECTS ARE EXTREMELY WELL IN THE LAST 12 MONTHS AND OUR IMMEDIATE
PIERS JACOBS,
TODAY SAID GOOD, THE FINANCIAL (WEDNESDAY).
SECRETARY,
HON THE
LEGISLATIVE COUNCIL, PRESENTING THE BUDGET FOR 1988-89 AT THE
THIS AFTERNOON WOULD REVEAL MR JACOBS SAID WHAT HE WOULD BE SAYING
ONLY ΤΟ THE EXTENT TO WHICH OUR BUOYANT ECONOMY WOULD ENABLE HIM NOT
ALSO TO EASR THE INCREASE THE PROVISION OF GOVERNMENT SERVICES BUT TAX BURDEN ON THE COMMUNITY WITHOUT PUTTING OUR ECONOMY OR THE TERM STABILITY OF OUR BUDGETARY MANAGEMENT AT UNDUE RISK,
MR
JACOBS
SAID
A
BUDGET
SPEECH
GAVE
LONGER
то
THE OPPORTUNITY AND TO FORECAST WHAT YEAR AND IN THE
EXAMINE OUR PERFORMANCE SINCE THE LAST BUDGET THE ECONOMY MIGHT HAVE IN STORE FOR HONG KONG NEXT YEARS BEYOND.
"THIS APPROACH REFLECTS WHAT UNDERLYING THEME IN THE MANAGEMENT CAREFUL PLANNING OF PUBLIC SERVICES AFFORD OVER THE LONGER TERM.
I BELIEVE
OF
OUR PUBLIC
IN
THE LIGHT
"I MUST STRESS THAT THE
PRUDENT
MANAGEMENT
SHOULD
BE THE
FINANCES
THE
OF WHAT WE CAN
OF
OUR
PUBLIC
FINANCES, GIVEN THE CYCLICAL NATURE
OF OUR ECONOMY, DEPENDS TO A TO TRENDS AND GREAT EXTENT ON OUR CONTINUING TO PAY CLOSE ATTENTION
MEASURES ON TAKING EARLY ACTION WHERE NECESSARY TO AVOID MORE EXTREME AT A LATER DATE, HE SAID.
***
THE TREND
LOOKING BACK AT THE ECONOMY IN 1987, MR JACOBS SAID BEGUN IN 1986 OF STRONG EXPORT-LED GROWTH CONTINUED THROUGH 1987.
TURN "THE SHARP RISE IN OUR DOMESTIC EXPORTS AND RE-EXPORTS IN
OUR GROSS DOMESTIC BOOSTED INCOMES AND DOMESTIC DEMAND. AS A RESULT,
CENT IN REAL PRODUCT (GDP) RECORDED A GROWTH RATE OF ABOUT 13.5 PER TERMS.
"THUS WE HAVE ENJOYED TWO GROWTH," HE SAID.
YEARS CONSECUTIVE
OF DOUBLE-DIGIT
MR
ECONOMIC
PERFORMANCE
HAD
JACOBS SAID THIS REMARKABLE BENEFITED HONG KONG IN A NUMBER OF WAYS,
TO A SUBSTANTIAL
"FIRST, THE BUOYANT ECONOMIC CONDITIONS LED INCREASE IN CAPITAL INVESTMENT AND AN ACTIVE PROPERTY MARKET.
STAYING AT A HISTORIC "SECONDLY, WITH THE UNEMPLOYMENT RATE
EFFECT FULL LOW LEVEL OF 1.8 PER CENT DURING MUCH OF 1987, WE HAD IN EMPLOYMENT THROUGHOUT THE YEAR.
"THIRDLY, WAGES