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WEDNESDAY, MARCH 6, 1991
"THE NUMBERS OF INCOMING VISITORS AND OF LOCAL RESIDENTS TRAVELLING ABROAD WERE BOTH SIGNIFICANTLY HIGHER.
"AS IN PREVIOUS YEARS, THERE WAS A SURPLUS ON THE INVISIBLE TRADE ACCOUNT, HE SAID.
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IN THE DOMESTIC SECTOR, PRIVATE CONSUMPTION EXPENDITURE PICKED AFTER THE FIRST QUARTER, MAINLY DUE TO INCREASED EXPENDITURE ON SERVICES AND CONSUMER DURABLES. A GROWTH RATE OF FOUR PER CENT WAS ATTAINED IN 1990.
GOVERNMENT CONSUMPTION EXPENDITURE WAS EIGHT PER CENT HIGHER.
INVESTMENT IN 1990 IMPROVED SIGNIFICANTLY. BUILDING AND CONSTRUCTION EXPENDITURE BY THE PUBLIC AND PRIVATE SECTORS INCREASED BY SEVEN AND EIGHT PER CENT RESPECTIVELY, GIVING AN OVERALL INCREASE OF ABOUT BIGHT PER CENT.
IN PARTICULAR, TOWARDS THE END OF THE YEAR THERE WAS STRONG GROWTH IN THE PRIVATE SECTOR. EXPENDITURE ON PLANT AND MACHINERY PICKED UP MARKEDLY IN THE FOURTH QUARTER.
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FOR 1990 AS A WHOLE, THIS EXPENDITURE ROSE BY FOUR PER CENT. THE REAL ESTATE DEVELOPERS MARGIN IS ESTIMATED TO HAVE RISEN BY 10 PER CENT.
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AS A RESULT OF THESE INCREASES, THE GROWTH RATE OF IMPROVED ENCOURAGINGLY TO AROUND SIX PER CENT IN 1990, FROM ONLY ABOUT ONE PER CENT IN 1989.
SIR PIERS SAID HONG KONG'S GDP ATTAINED A MODEST GROWTH OF 2.4 PER CENT IN 1990, ROUGHLY THE SAME AS IN 1989. BUT THE UNDERLYING TREND WAS DIFFERENT. ECONOMIC CROWTH SLOWED DOWN IN THE COURSE OF 1989 WHEREAS IN 1990 THE GROWTH RATE ACCELERATED AS THE YEAR ADVANCED.
THIS WAS A WELCOME DEVELOPMENT AND DEMONSTRATED ONCE AGAIN THE RESILIENCE OF THE HONG KONG ECONOMY.
HK'S ECONOMY IS SOUND DESPITE HIGH INFLATION RATE
THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, (WEDNESDAY) SAID THAT ALTHOUGH INFLATION REMAINS HIGH, HONG ECONOMY IS STILL FUNDAMENTALLY SOUND.
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PRESENTING HIS 1991-92 BUDGET, SIR PIERS SAID INFLATION AFFECTED EVERY MEMBER OF THE COMMUNITY REMAINED A MATTER OF GREAT CONCERN, BUT THERE WERE NO EASY ANSWERS.
"WHAT WE ARE EXPERIENCING IS IN PART A REFLECTION OF AN ECONOMIC ADJUSTMENT," HE SAID.
/HE EXPLAINED