LA
5
WEDNESDAY, MARCH 7, 1990
"FOR MANY SECTORS, CONSTRAINTS ON PRODUCTIVE CAPACITY AND PRESSURE ON COSTS WILL CONTINUE TO AFFECT BUSINESS GROWTH, HE SAID.
**
SIR PIERS EXPECTED THAT HONG KONG'S DOMESTIC EXPORTS WOULD RESUME MODEST GROWTH, AT 2.5 PER CENT, COMPARED TO VIRTUALLY ZERO GROW MORE GROWTH LAST YEAR, ALTHOUGH THE WORLD ECONOMY WAS LIKELY TO SLOWLY THIS YEAR.
HOWEVER, HE POINTED OUT THAT PERFORMANCE WOULD VARY FROM MARKET
TO MARKET.
"OUR DOMESTIC EXPORTS TO THE UNITED STATES MAY SHOW A MARGINAL IMPROVEMENT AFTER TWO YEARS OF DECLINE.
"THOSE TO CHINA ARE LIKELY TO BE RESTRAINED BY CHINA'S AUSTERITY PROGRAMME, AND EXPORTS ACROSS THE BORDER FOR OUTWARD PROCESSING PURPOSES MAY CONTINUE TO BE AFFECTED BY SUPPLY BOTTLENECKS GUANGDONG AND UNCERTAIN OVERSEAS DEMAND.
IN
"OUR DOMESTIC EXPORTS TO THE FEDERAL REPUBLIC OF GERMANY AND JAPAN SHOULD SHOW FAIRLY STRONG GROWTH, BUT THOSE TO THE UNITED KINGDOM COULD DECLINE FURTHER," HE SAID.
NOTING THAT HONG KONG'S MAJOR PARTNER IN ITS RE-EXPORT TRADE WAS KONG'S CHINA, SIR PIERS SAID IN PRESENT CIRCUMSTANCES, GROWTH IN HONG TOTAL
THAN RE-EXPORTS WOULD DEPEND MORE ON CHINA'S EXPORT CAPABILITY ON ITS IMPORT DEMAND.
"A
SLOW-DOWN FROM LAST YEAR'S GROWTH RATE OF 19 PER CENT SEEMS INEVITABLE, AND MY FORECAST OF RE-EXPORT GROWTH FOR THIS YEAR IS EIGHT PER CENT, HE SAID.
HE
FORECAST THAT EXPORTS OF SERVICES WOULD INCREASE BY 5.5 PER CENT THIS YEAR AND IMPORTS OF SERVICES WOULD GROW BY FIVE PER CENT.
דיי
EXPECT CONTINUED DEMAND FOR TRADE-RELATED SERVICES AND AN ENCOURAGING RECOVERY IN TOURISM. HE SAID.
SIR PIERS SAID THE RECENT SLOW-DOWN IN ECONOMIC GROWTH IN HONG KONG WAS LIKELY TO AFFECT DOMESTIC DEMAND IN 1990.
"MY FORECAST OF THE GROWTH RATE IN 1990 FOR PRIVATE CONSUMPTION EXPENDITURE IS 3.5 PER CENT, AND FOR INVESTMENT IN PLANT AND MACHINERY 2.8 PER CENT," HE SAID.
WAS
BY CONTRAST, AND REFLECTING THE CONTINUING COMMITMENT OF THE GOVERNMENT TO PROVIDE MORE AND BETTER PUBLIC SERVICES, THE FINANCIAL SECRETARY SAID THAT THE GOVERNMENT CONSUMPTION EXPENDITURE EXPECTED TO INCREASE BY 10 PER CENT AND PUBLIC SECTOR EXPENDITURE BUILDING AND CONSTRUCTION BY 15 PER CENT.
ON
AND
"EVEN THOUGH PRIVATE SECTOR EXPENDITURE ON BUILDING
IS EXPECTED CONSTRUCTION
TO BE ONLY 0.5 PER CENT HIGHER. OVERALL CONSTRUCTION OUTPUT IS FORECAST TO INCREASE BY 5.5 PER CENT.
/"THE PRESSURE