INFLATION
_
WEDNESDAY, MARCH 3, 1993
5
A COST OF GROWTH
HONG KONG'S PRIORITIES MUST CONTINUE TO BE ECONOMIC EXPANSION, REAL GROWTH IN BOTH PROFITS AND PERSONAL INCOMES, AND A HIGH LEVEL OF EMPLOYMENT, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).
PRESENTING HIS BUDGET FOR 1993/94, MR MACLEOD SAID PURSUIT OF THESE GOALS MADE IT DIFFICULT TO ESCAPE FROM PRESSURE ON PRICES.
"BUT
PROBLEM OF BANKRUPTCIES,
I BELIEVE THAT OUR COMMUNITY WOULD PREFER TO FACE THE CONTAINING INFLATION RATHER THAN THE THREAT OF UNEMPLOYMENT AND STAGNANT INCOMES.
"INDEED, HONG KONG'S RECORD IN SUCCESSFULLY AVOIDING THE MISERY OF UNEMPLOYMENT IS OUTSTANDING, HE SAID.
|
HE SAID IN COMMON WITH MOST OF ITS ASIAN NEIGHBOURS, HONG KONG PUT GROWTH FIRST.
THE FINANCIAL SECRETARY SHARED THE SAME BASIC OBJECTIVES AS ECONOMIC POLICY-MAKERS ALL OVER THE WORLD: LOW INFLATION, HIGH GROWTH AND FULL EMPLOYMENT.
BUT HE ADDED THAT POLICY-MAKERS AROUND THE WORLD ALSO KNOW то THEIR COST THAT THERE WAS NO CERTAIN RECIPE FOR ACHIEVING THIS.
"
"IN MANY WESTERN ECONOMIES, PRICE STABILITY HAS BEEN ACHIEVED, BUT ONLY AT THE COST OF LOW ECONOMIC GROWTH AND HIGH UNEMPLOYMENT, HE SAID.
DESCRIBING INFLATION AS ONE OF THE TWO CHALLENGES TO BCONOMIC PROSPECTS, MR MACLEOD SAID ALTHOUGH, AT 9,4% LAST YEAR, INFLATION HAD FALLEN SUBSTANTIALLY PROM ITS PEAK OF 13.9%, IT WOULD REMAIN UNCOMFORTABLY HIGH, WITH THE CPI(A) LIKELY TO STAY CLOSE TO 9.5% THIS
YEAR.
"THE LEVEL IN INDIVIDUAL MONTHS MAY PROVE SOME WHAT HIGHER BECAUSE OF SEASONAL FACTORS. BUT THE OVERALL TREND SHOULD BE FOR SINGLE-DIGIT INFLATION.
" I ACCEPT THAT THIS, THOUGH BETTER THAN IN PREVIOUS YEARS, IS STILL NOT SATISFACTORY," HE SAID.
NONETHELESS, INFLATION IS AN
TO BE COMPLACENT, IN THE GOVERNMENT,
|1
ISSUE ON WHICH NO ONE CAN AFFORD IN BUSINESS OR IN THE COMMUNITY.
'THE SUDDEN SPURT IN CONSUMER PRICES IN JANUARY WAS A REMINDER THAT COMPLACENCY HAS NO PLACE IN OUR THINKING.
1 SHOULD ADD THAT I AM CONFIDENT THAT JANUARY WAS AN EXCEPTION WHICH WILL BE OFFSET OVER THE YEAR AS A WHOLE.
"I
AT THE SAME TIME, IF THERE WERE ANY QUICK SOLUTION, OTHER ECONOMIC STAGNATION AND ALL THE SOCIAL MISERY THAT IT BRINGS, KONG WOULD HAVE FOUND IT, HE SAID.
THAN
HONG
"THE TRUTH