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WEDNESDAY, DECEMBER 9, 1992
SPEECH BY FINANCIAL SECRETARY AT ADJOURNMENT DEBATE IN LEGCO
ON HK'S ECONOMIC STABILITY AND DEMOCRATIC DEVELOPMENT
MR DEPUTY PRESIDENT,
THE PERFORMANCE OF THE LOCAL STOCK MARKET OVER THE PAST WEEK OR SO, AND THE DETERIORATION IN RELATIONS WITH CHINA WHICH UNDERLIES THE MARKET'S DROP, HAS UNDERSTANDABLY SPARKED NERVOUSNESS AND CONCERN.
BUT THE FALL SHOULD BE SEEN AGAINST A RISE OF SOME 40 PERCENT OF THE HANG SENG INDEX OVER THE LAST YEAR. THE INDEX HAD BEEN GROWING RAPIDLY THIS YEAR AND HIT AN ALL-TIME HIGH OF 6447 POINTS ON L2 NOVEMBER. THE MARKET IS STILL WELL AHEAD OF ITS JANUARY-FEBRUARY LEVEL THIS YEAR. OUR INDEX HAS ALWAYS BEEN FAIRLY VOLATILE. INVESTORS SHOULD BE CALM AND MAINTAIN A SENSE OF PROPORTION.
IN
OUR
IT IS IMPORTANT MORE GENERALLY THAT WE KEEP MATTERS PERSPECTIVE. AS A SPEAKER HAS ALREADY SAID, THE FUNDAMENTALS UNDERLYING OUR ECONOMY CONTINUE ΤΟ BE STRONG AND SOUND. CONTINUING GROWTH IS FIRMLY BASED, BRINGING INCREASING PROSPERITY то OUR COMMUNITY. WHILST MUCH OF THE REST OF THE WORLD SUFFERS THE MISERIES AND PERSONAL HARDSHIPS OF RECESSION AND UNEMPLOYMENT, WE IN HONG KONG ARE THRIVING. WE ARE CONFIDENT OF ACHIEVING A FIVE PERCENT GROWTH IN REAL TERMS FOR OUR ECONOMY THIS YEAR, AND INDEED, AN AVERAGE OF 5% GROWTH RIGHT UP TO 1997. THIS ASSESSMENT OF FUTURE GROWTH IS SHARED BY MANY ECONOMISTS AND OTHER EXPERTS. INDEED, THE ASIAN DEVELOPMENT BANK FORECASTS OUR GROWTH TO BE SOMEWHAT HIGHER, AT 6% FOR THIS AND THE FOLLOWING YEAR.
OUR
THE THIRD OUR TOTAL
THIS GROWTH IS INCREASING THE WELL-BEING OF OUR COMMUNITY. PER CAPITA GROSS DOMESTIC PRODUCT IS NOW OVER US$L6,000 HIGHEST IN ASIA AFTER JAPAN AND THE OIL STATE OF BRUNEI. EXPORTS HAVE CONTINUED TO GROW STRONGLY. AND PROSPECTS ARE GENERALLY BRIGHT, WITH RISING INTRA-REGIONAL TRADE, AND MORE HOPE тоо OF AN ECONOMIC RECOVERY IN THE US. CHINA OF COURSE CONTINUES TO BE A KEY FACTOR BOTH AS A GROWING MARKET AND AS AN EXPANDING PRODUCTION BASE FOR HONG KONG INVESTORS. THE RESULT HAS BEEN A MARKED INCREASE IN OUR RETAINED IMPORTS, REFLECTING BUOYANT DOMESTIC DEMAND.
WE HAVE MUCH TO BE PROUD OF. LET US NOT FORGET THAT THIS SMALL PLACE IS THE TENTH LARGEST TRADING ENTITY AND NUMBER ONE CONTAINER PORT IN THE WORLD. OUR AIRPORT IS THE FOURTH BUSIEST INTERNATIONAL AIRPORT ON EARTH. AND WE EVEN USE MORE MOBILE TELEPHONES PER HEAD THAN I BELIEVE ANYWHERE ELSE! WE HAVE ENJOYED SPECTACULAR ECONOMIC GROWTH OVER THE YEARS GROWTH WHICH HAS IN TURN GREATLY BENEFITTED HONG KONG PEOPLE,
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/MR DEPUTY