4
WEDNESDAY, MARCH 1, 1989
"ON THE FISCAL SIDE THERE IS AGAIN
LITTLE SCOPE FOR
ACTION,
PRIMARILY BECAUSE OPENNESS OF THE
THE SMALL SIZE ECONOMY LIMIT
OF
THE
THE PUBLIC SECTOR LEVERAGE THAT
BE CAN
AND
THE
EXERTED
THROUGH CHANGING EITHER TAX RATES OR THE LEVEL OF PUBLIC EXPENDITURE, HE SAID.
'THE GOVERNMENT ΤΟ ENSURE
NEVERTHELESS, IT WAS NECESSARY FOR THAT ITS ACTIONS HELPED RATHER THAN EXACERBATED THE SITUATION.
BUDGET SURPLUS
COURSE
IN THIS RESPECT, RUNNING A LARGER-THAN-PLANNED IN THE CURRENT YEAR WAS, IN ECONOMIC TERMS, ENTIRELY THE RIGHT TO TAKE IN THE FACE OF INFLATIONARY PRESSURE.
CIRCUMSTANCES,
INCREASED
PUBLIC SECTOR MANAGEABLE,
"IN OUR PRESENT EXPENDITURE IS ACCEPTABLE ONLY SO LONG AS THE INCREASE IS AND ONLY SO LONG AS REVENUE RISES MORE RAPIDLY, WITH THE RESULT OVERALL, THE GOVERNMENT IS REMOVING SPENDING POWER FROM THE HE SAID.
THAT, ECONOMY,
**
OF INFLATION IN INFLATION WAS HAD ONLY A LIMITED
LOCAL IMPACT ON THE
ECONOMY TURNING TO THE CHINA, THE FINANCIAL SECRETARY SAID THAT WHILE CHINA'S RUNNING AHEAD OF THAT IN HONG KONG, SO FAR THIS EFFECT ON PRICES IN HONG KONG.
CENT IMPORT PRICES OF CHINESE GOODS INCREASED BY ABOUT 1,5 PER
GOODS IN 1988, AND ALTHOUGH AT THE RETAIL LEVEL THE PRICES OF CHINESE ROSE MORE
THE
WERE NOT RAPIDLY THAN THIS FIGURE,
INCREASES OF GOODS FROM OTHER SOURCES, SIGNIFICANTLY OUT OF LINE WITH THOSE BOTH DOMESTICALLY PRODUCED AND IMPORTED.
WISH, THE
LOOKING AHEAD, THE FINANCIAL SECRETARY SAID THAT IN DUE COURSE, POSSIBLY OVER A LONGER PERIOD OF TIME THAN HONG KONG WOULD ECONOMY WOULD ADJUST,
THERE WERE SIGNS THAT UNDERWAY, IN THE SENSE THAT THE GROWTH RATE OF 1988 THAN IN 1987, HE SAID.
THIS
ADJUSTMENT
ALREADY PROCESS WAS DEMAND WAS LOWER IN
SIX PER CENT GDP GROWTH RATE PREDICTED
THE FINANCIAL
THE SECRETARY,
HON PIERS GROWTH IN THE
JACOBS, TODAY GROSS DOMESTIC
(WEDNESDAY) PREDICTED A SIX PER CENT PRODUCT (GDP) FOR 1989.
REFLECTION AS A
OF
GROWING
AFFLUENCE,
PER
CAPITA
GDP
IN
CURRENT PRICE TERMS WAS EXPECTED TO RISE TO US$11,000.
PROUD,
CAN BE JUSTLY
"THIS IS A REMARKABLE ACHIEVEMENT, OF WHICH WE
HE SAID IN PRESENTING HIS BUDGET TO THE LEGISLATIVE COUNCIL.
/MR JACOBS
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