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FRIDAY, MAY 24, 1991

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE, AT 1.8% IN THE FIRST THAN IN THE QUARTER OF 1991, WAS 0.4 OF A PERCENTAGE POINT HIGHER PRECEDING QUARTER AND 0.1 OF A PERCENTAGE POINT HIGHER THAN SAME QUARTER LAST YEAR.

IN THE

AND

THE UNDEREMPLOYMENT RATE, AT 1.5% IN THE FIRST QUARTER, WAS 0.7

THAN IN RESPECTIVELY

THE 0.8 OF A

HIGHER A PERCENTAGE POINT PRECEDING QUARTER AND IN THE SAME QUARTER LAST YEAR.

IN

THE FOURTH QUARTER OF 1990, THE PROPORTION OF THE POPULATION WORKING OVERTIME WAS REDUCED. VACANCIES ALSO DECREASED MOST SECTORS.

EMPLOYED

IN

MARKET SIZED

OUT THE ON THE RESIDENTIAL PROPERTY MARKET, MR TANG POINTED

SMALL TO MEDIUM- PICKED UP FURTHER DURING THE FIRST QUARTER. RESIDENTIAL FLATS CONTINUED TO ATTRACT KEEN BUYERS' INTEREST.

WERE

APART FROM SUPPORT FROM END-USERS, SPECULATIVE INTERESTS

SHOWED SOME ALSO APPARENT. THE DEMAND FOR LARGE RESIDENTIAL FLATS

IMPROVEMENT.

"THE MARKET FOR SHOPPING SPACE IN THE MAIN SHOPPING AREAS WELL.

AFFECTED BY UP

THE MARKET FOR OFFICE SPACE WAS STILL SUPPLY, WHILE THE MARKET FOR INDUSTRIAL PROPERTY REMAINED QUIET,' TANG SAID.

IN THE FINANCIAL SECTOR, OBSERVED DURING THE FIRST QUARTER.

HELD

OVER-

MR

THE FOLLOWING DEVELOPMENTS

WERE

FIRST, REFLECTING THE APPRECIATION OF THE US DOLLAR THE QUARTER, THE EFFECTIVE EXCHANGE RATE INDEX OF THE KONG DOLLAR ROSE FROM 109.3 AT THE END OF 1990 TO 112.2 THE END OF MARCH 1991.

DURING

HONG AT

SECONDLY, LOCAL MONEY MARKET INTEREST

THE FIRST QUARTER, IN LINE WITH THE MOVEMENT IN INTEREST RATES.

RATES EASED DURING US DOLLAR

THIRDLY, CONSISTENT WITH AN IMPROVED ECONOMIC DOMESTIC LOANS AND ADVANCES REGISTERED FURTHER GROWTH.

PERFORMANCE,

FOURTHLY, LOCAL SHARE PRICES AND TURNOVER REGISTERED SIGNIFICANT INCREASES DURING THE FIRST QUARTER.

1991

TO MADE

THE

MR TANG SAID IN UPDATING THE GDP AND PRICE FORECASTS FOR IN THE LIGHT OF THESE DEVELOPMENTS, ADJUSTMENTS WERE COMPONENT FORECASTS AS APPROPRIATE.

IN

INCREASE FORECAST,

THE

EXTERNAL

TO EARLIER

EXPORTS SECTOR, DOMESTIC

ARE EXPECTED BY ABOUT 2.5% IN REAL TERMS IN 1991, SAME AS IN THE

"ORDERS-ON-HAND CONTINUED то IMPROVE IN RECENT MONTHS, FOLLOWING DECLINES FOR MANY MONTHS IN 1990," MR TANG SAID.

H

'CURRENT INFORMATION ON RETAINED IMPORTS OF RAW MATERIALS SEMI-MANUFACTURES ALSO SUGGESTS THAT THE IMPROVED PERFORMANCE DOMESTIC EXPORTS COULD BE SUSTAINED IN THE NEAR FUTURE.

AND

OF

/THE GROWTH

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