28
WEDNESDAY, MAY 24, 1989
TAKEN
TOGETHER, GROWTH RATE OF GDP ATTACHED TABLE).
THE FORECAST (SEE DETAILS IN THE
THESE CHANGES HAVE NOT ALTERED FOR 1989, AT 6 PER CENT
THE PERFORMANCE OF DOMESTIC EXPORTS IN THE FIRST NOT BEEN AS GOOD AS INITIALLY EXPECTED.
QUARTER HAD
ALTHOUGH THE LATEST ORDERS POSITION AND THE RECENT INCREASES IN THAT RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES SUGGEST
IN THE SECOND THE PERFORMANCE OF DOMESTIC EXPORTS COULD BE BETTER
HONG KONG'S MAJOR THE
ECONOMIC GROWTH IN QUARTER,
SLOW-DOWN IN
AND THE FEDERAL, OVERSEAS MARKETS, PARTICULARLY THE UNITED STATES REPUBLIC OF GERMANY, SEEMS LIKELY TO RESTRAIN THEIR DEMAND FOR KONG'S PRODUCTS IN THE SECOND HALF OF THE YEAR.
MOREOVER, THE STRENGTHENING OF BEGINNING OF
THE
HONG
SINCE THE US DOLLAR
ADVERSELY EXPECTED TO AFFECT YEAR COULD BE THE PRICE COMPETITIVENESS OF HONG KONG'S PRODUCTS IN SOME MARKETS.
THE
THE THE SLOWER FOR THE SAME TO GROW MORE
TO BE RESTRAINED BY DOMESTIC EXPORTS TO CHINA ARE LIKELY CHINA'S AUSTERITY MEASURES AS WELL AS BY A POSSIBLE SLOW-DOWN IN EXPANSION OF OUTWARD PROCESSING ACTIVITIES, IN LINE WITH GROWTH IN OVERSEAS DEMAND FOR HONG KONG'S PRODUCTS. REASONS HONG KONG'S RE-EXPORTS TO CHINA ARE EXPECTED SLOWLY.
DOMESTIC DEMAND IS EXPECTED TO REMAIN ROBUST FOR MOST OF
THE SLOWER GROWTH YEAR BUT WOULD EVENTUALLY BE RESTRAINED BY EXPORTS.
THE
IN
SUPPORT IN THE BROUGHT
A NUMBER OF FACTORS ARE EXPECTED TO PROVIDE SHORT TERM, INCLUDING THE INCREASE IN CONSUMPTION EXPENDITURE
IN MACHINERY AND ABOUT BY HIGHER INCOMES, CONTINUED INVESTMENT EQUIPMENT IN RESPONSE TO THE TIGHT LABOUR MARKET CONDITIONS, INTENSIVE EXPANDING SERVICE BUILDING AND CONSTRUCTION ACTIVITY, AND THE FAST SECTORS.
THUS, DOMESTIC DEMAND IS EXPECTED TO
PROVIDE A
RELATIVELY ENVISAGED
GREATER IMPETUS TO OVERALL ECONOMIC GROWTH IN 1989 THAN WAS IN THE EARLIER FORECAST.
INFLATIONARY
ARE PRESSURES
EXPECTED TO BE
A
FOR SUSTAINED
RESULT WHILE BEFORE EASING, PROBABLY TOWARDS THE END OF THE YEAR AS A
CURRENTLY, EXCESS ECONOMIC ACTIVITY. OF A CONTINUED MODERATION IN
SOURCE OF SUCH INFLATIONARY IN DEMAND PRESSURES,
THE ECONOMY
IS THE
MAIN
ECONOMY,
IN ADDITION, GENERALLY HIGHER INFLATION IN THE WORLD LEAST HIGHER PRICES OF BASIC COMMODITIES, INCLUDING THOSE OF OIL PRODUCTS, ARE ALSO CONTRIBUTING.
NOT
HOWEVER, THE FIRMING UP IN THE EXCHANGE VALUE OF THE US DOLLAR,
SHOULD BE DOLLAR,
HAVING THE HONG KONG OF
AND
HENCE THAT STABILISING EFFECT.
SOME
/THE LATEST
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