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WEDNESDAY, APRIL 17, 1991
ON THE OTHER HAND, SIR PIERS BELIEVED THAT LOWER OIL PRODUCT PRICES AND GENERALLY STABLE COMMODITY PRICES IN THE WORLD
MARKET, COUPLED WITH THE STRENGTH OF THE US DOLLAR, WOULD HELP TO LESSEN INFLATIONARY PRESSURES FROM EXTERNAL SOURCES.
"LOCAL WAGES AND SALARIES ARE REPORTED TO HAVE BEEN RISING LESS RAPIDLY IN RECENT MONTHS. I BELIEVE THAT MORE MODEST PAY INCREASES COULD HELP THE PROCESS OF CURRING INFLATION," HE SAID.
UP-DATING MEMBERS ON THE ECONOMY, THE FINANCIAL SECRETARY SAID WITH THE ENDING OF THE GULF WAR, THE GLOBAL ECONOMIC CLIMATE HAD TURNED BRIGHTER.
"THIS WILL CONTRIBUTE TO A BETTER PERFORMANCE OF OUR ECONOMY THIS YEAR. THE LATEST TREND IN OUR DOMESTIC EXPORTS AND RE-EXPORTS IS ENCOURAGING," HE SAID.
RATE
IN THE FIRST TWO MONTHS OF 1991, THE YEAR-ON-YEAR GROWTH
7 IN REAL TERMS OF DOMESTIC EXPORTS ACCELERATED TO AROUND NINE PER CENT, WHILE THAT OF RE-EXPORTS REMAINED ROBUST AT NEARLY 30 PER CENT.
SIR PIERS NOTED THAT THERE WAS ALSO A PICK-UP IN LOCAL DEMAND, PARTICULARLY IN THE ACQUISITION OF PLANT AND EQUIPMENT, WHICH SIGNIFIED IMPROVED INVESTOR CONFIDENCE AND THE DESIRE OF PRODUCERS EXPAND CAPACITY.
MEANWHILE, THE LOCAL WORKFORCE HAD REMAINED FULLY EMPLOYED.
"MEMBERS
WILL NO DOUBT AGREE THAT REAL ECONOMIC GROWTH IS SOURCE OF IMPROVEMENT IN INCOME AND STANDARDS OF LIVING.
ΤΟ
THE
"OUR ECONOMY IS POISED TO TAKE ADVANTAGE OF THE BETTER BUSINESS ENVIRONMENT THAT LIES AHEAD, HE SAID.
THE FINANCIAL SECRETARY SAID A KEEN SENSE OF FISCAL FRUGALITY AND DISCIPLINE WAS ALL THE MORE IMPORTANT WHEN THE INFLATION RATE HIGH.
WAS
"I HOPE I HAVE REASSURED MEMBERS THAT OUR BUDGETARY POSITION IS WELL UNDER CONTROL, AND THAT OUR EFFORTS IN THIS REGARD WILL CONTINUE UNABATED.
RATE
"I HAVE STRESSED THE PARTICULAR IMPORTANCE OF KEEPING RECURRENT EXPENDITURE IN CHECK. AS I MENTIONED IN MY BUDGET SPEECH, THE GROWTH
OF RECURRENT EXPENDITURE OVER THE PERIOD OF THE MEDIUM FORECAST, WILL BE KEPT BELOW THE TREND GROWTH RATE OF GDP," SIR SAID.
RANGE
PIERS
HE SAID THE PROPOSAL ΤΟ DEVELOP A GOVERNMENT PROGRAMME,
BORROWING STARTING WITH THE ISSUE OF TWO OR THREE-YEAR BONDS LATER THIS CALENDAR YEAR, DEPENDING ON SATISFACTORY PROGRES8 WITH THE NECESSARY LEGISLATION.
AS ANY MONEY BORROWED WOULD BE PUT ASIDE AND WOULD NOT BE SPENT IN THIS FINANCIAL YEAR, THE EFFECT WOULD BE TO RUN A LARGER SURPLUS.
THE ANTI-INFLATIONARY EFFECT OF THE PUBLIC FINANCES IN YEARS WOULD THEREFORE CONTINUE TO BE BROADLY MAINTAINED, HE SAID.
RECENT
/TO THE
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