لیا
WEDNESDAY, MARCH 7, 1990
IN
IN THE EXTERNAL SECTOR, THERE WAS VIRTUALLY NO GROWTH DOMESTIC EXPORTS IN 1989, BUT RE-EXPORTS CONTINUED TO GROW STRONGLY, ALTHOUGH NOT AS FAST AS IN 1988, SIR PIERS SAID.
"AS A PROPORTION OF TOTAL EXPORTS, RE-EXPORTS EXCEEDED EXPORTS FOR THE SECOND CONSECUTIVE YEAR," HE SAID.
DOMESTIC
SIR PIERS SAID THE PERFORMANCE OF OUR DOMESTIC EXPORTS IN SOME OF OUR MAJOR MARKETS. INCLUDING THE UNITED STATES, THE FEDERAL REPUBLIC OF GERMANY AND THE UNITED KINGDOM, WAS RATHER DISAPPOINTING.
BY CONTRAST, OUR DOMESTIC EXPORTS TO BOTH JAPAN AND CHINA STILL SHOWED A SIGNIFICANT INCREASE, ALTHOUGH THERE WAS SOME SLACKENING IN THE LATTER PART OF THE YEAR.
RE-EXPORTS то CHINA GREW MORE MODESTLY THAN IN 1988, BUT THE STRONG GROWTH IN RE-EXPORTS OF CHINA ORIGIN WAS SUSTAINED.
WITH TOTAL RE-EXPORTS UP BY 19 PER CENT, HONG KONG REMAINED A MAJOR ENTREPOT FOR CHINA AND THE ASIA-PACIFIC REGION, HE SAID.
IN THE DOMESTIC SECTOR, THE SLOW-DOWN IN ECONOMIC ALSO EVIDENT.
GROWTH WAS
"PRIVATE CONSUMPTION EXPENDITURE GREW BY ONLY THREE PER CENT 1989, MUCH LESS THAN THE INCREASE OF NINE PER CENT IN EXPENDITURE ON CONSUMER DURABLES IN FACT SHOWED A DECLINE,' SIR
SAID.
11
IN
1988: PIERS
THE FINANCIAL SECRETARY SAID THE GROWTH RATE OF INVESTMENT ALSO FELL, FROM SIX PER CENT IN 1988 TO ONLY ABOUT ONE PER CENT IN 1989.
"THIS COMPRISED A 1.5 PER CENT INCREASE IN EXPENDITURE ON PLANT AND MACHINERY AND A 5.3 PER CENT INCREASE IN EXPENDITURE ON BUILDING AND CONSTRUCTION, OFFSET IN PART BY A DECREASE OF ABOUT THREE PER CENT IN THE REAL ESTATE DEVELOPERS' MARGIN.
"REFLECTING A MORE CAUTIOUS SENTIMENT TOWARDS INVESTMENT IN THE MANUFACTURING SECTOR, RETAINED IMPORTS OF MACHINERY FOR USE IN MANUFACTURING DECLINED BY EIGHT PER CENT LAST YEAR, HE SAID.
TI
SIR PIERS SAID WITH THE SLOW-DOWN IN BOTH EXPORTS AND DEMAND. IMPORTS ALSO GREW MORE SLOWLY, AT NINE PER CENT COMPARED WITH 27 PER CENT IN THE PREVIOUS YEAR.
DOMESTIC IN 1989
"AS IN
1+
1988, OUR VISIBLE TRADE ACCOUNT REMAINED BALANCE, HE SAID.
VIRTUALLY IN
THE FINANCIAL SECRETARY POINTED OUT THAT LAST YEAR WAS A TESTING TIME FOR HONG KONG, AND THIS WAS REFLECTED IN THE TERRITORY'S ECONOMIC PERFORMANCE, BUT HISTORY HAD DEMONSTRATED OUR FLEXIBILITY AND RESILIENCE.
"AS AN OPEN ECONOMY, WE ARE VULNERABLE TO EXTERNAL HE SAID.
INFLUENCES,"
/"ALTHOUGH THE