THURSDAY, AUGUST 25, 1988
HALF-YEARLY ECONOMIC REPORT 1988 RELEASED
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FOLLOWING TWO CONSECUTIVE YEARS OF DOUBLE-DIGIT ECONOMIC GROWTH, THE OVERALL GROWTH RATE OF THE HONG KONG ECONOMY SETTLED ΤΟ A MORE MODERATE PACE IN THE FIRST HALF OF 1988.
THE GROWTH RATE OF DOMESTIC EXPORTS, IN PARTICULAR, SLOWED DOWN MARKEDLY. HOWEVER, RE-EXPORTS CONTINUED TO RISE RAPIDLY, MAINLY DUE TO THE FLOURISHING RE-EXPORT TRADE WITH CHINA.
THESE DEVELOPMENTS ARE DISCUSSED IN THE HALF-YEARLY ECONOMIC REPORT 1988 RELEASED TODAY (THURSDAY) BY THE ECONOMIC SERVICES BRANCH OF THE GOVERNMENT SECRETARIAT.
IN THE PROCESS OF PREPARING THIS REPORT, USEFUL COMMENTS AND ADVICE WERE RECEIVED FROM THE ECONOMIC REVIEW COMMITTEE, WHICH IS CHAIRED BY THE FINANCIAL SECRETARY AND INCLUDES IN ITS MEMBERSHIP EIGHT MEMBERS OF THE LEGISLATIVE COUNCIL
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THE GROWTH RATE OF DOMESTIC EXPORTS CONTINUED TO SŁOW DOWN IN THE FIRST HALF OF 1988.
THE YEAR-ON-YEAR GROWTH RATE IN REAL TERMS OF DOMESTIC EXPORTS IN THE FIRST HALF OF THIS YEAR WAS ABOUT 8 PER CENT, COMPARED WITH THE CORRESPONDING GROWTH RATES OF 27 PER CENT AND 20 PER CENT RECORDED IN THE FIRST AND SECOND HALVES OF 1987.
AND
CURRENT INFORMATION ON RETAINED IMPORTS OF RAW MATERIALS SEMI-MANUFACTURES AND ON THE ORDER-BOOK POSITIONS OF LARGE MANUFACTURERS SUGGESTS THAT THE GROWTH RATE OF DOMESTIC EXPORTS PROBABLY CONTINUE TO BE MODERATE IN THE COMING MONTHS.
WILL
AS REGARDS DOMESTIC DEMAND, THE GROWTH RATE OF LOCAL CONSUMPTION EXPENDITURE, PARTICULARLY ON CONSUMER GOODS, WAS PROBABLY SLOWING DOWN.
RETAINED IMPORTS OF CONSUMER GOODS AND FOODSTUFFS GREW BY ABOUT 2 PER CENT AND 10 PER CENT RESPECTIVELY IN REAL TERMS IN THE FIRST HALF OF 1988 OVER THE FIRST HALF OF 1987.
THE CORRESPONDING GROWTH RATES RECORDED IN THE SECOND HALF OF 1987 WERK 9 PER CENT AND 14 PER CENT. HOWEVER, UP TO MAY 1988 THE VOLUME OF RETAIL SALES WAS STILL RECORDING SIGNIFICANT INCREASES OVER A YEAR EARLIER.
INVESTMENT DEMAND ALSO DECELERATED, IN LINE WITH THE REDUCTION IN THE GROWTH MOMENTUM OF THE ECONOMY.
REFLECTING THES, RETAINED IMPORTS OF CAPITAL GOODS ABOUT 12 PPR CENT IN REAL TERMS IN THE FIRST HALF OF 1988 SAME PERIOD LAST YFAR, COMPARED WITH GROWTH RATES OF 25 PER 24 PER CENT RESPECTIVELY IN FIRST AND SECOND HALVES OF
1987.
GREW BY OVER
THE
AND
CENT
/WITHIN OVERALL