6
1ST QUARTER ECONOMIC REPORT
*
FRIDAY, MAY 27, 1994
THE
FIRST
QUARTER ECONOMIC REPORT 1994 WAS GOVERNMENT TODAY (FRIDAY).
RELEASED
BY THE
FOLLOWING IS A SUMMARY OF THE MAIN POINTS:
* THE
*
HONG
IN
THE
KONG ECONOMY CONTINUED TO GROW STEADILY FIRST QUARTER OF 1994. THE GROSS DOMESTIC PRODUCT (GDP) PROBABLY GREW BY 5% 5.5% IN REAL TERMS IN THE FIRST QUARTER,
SIMILAR TO THE GROWTH RATES
RECENT
QUARTERS.
BROADLY
IN
EXTERNALLY, RE-EXPORTS CONTINUED ΤΟ RECORD A NOTABLE PRECEDING INCREASE, ALBEIT AT A LESS RAPID RATE THAN IN THE
PERFORMANCE OF DOMESTIC EXPORTS HOWEVER
QUARTERS. REMAINED SLACK.
THE
LOCALLY,
CONSUMER
THE SPENDING ROSE STRONGLY, AND RATE OF INVESTMENT SPENDING PICKED UP SOMEWHAT.
GROWTH
NOTWITHSTANDING
A
RELATIVELY RAPID INCREASE IN LABOUR
*
SUPPLY, THE DEMAND FOR LABOUR MATCHED CLOSELY AND THE LABOUR MARKET REMAINED GENERALLY TIGHT.
THE
AND
THE PROPERTY MARKET WAS BUOYANT IN THE FIRST QUARTER. PRICE UPSURGES PARTICULARLY IN THE RESIDENTIAL PROPERTY OFFICE SPACE SUB-SECTORS HAD REINFORCED CONCERN, PROMPTING THE GOVERNMENT TO SET UP A TASK FORCE TO TACKLE THE
SITUATION.
CONSUMER
PRICE
INFLATION MODERATED SIGNIFICANTLY IN THE FIRST QUARTER OF 1994 FROM THE PRECEDING QUARTER. BUT THE PRICES INCREASES IN HOUSING RENTALS, TRANSPORT FARES AND IN OF CONSUMER SERVICES REMAINED RAPID.
REVIEWED
AND
THE ECONOMIC FORECASTS FOR 1994 HAS BEEN UPDATED. OVERALL, THE FORECAST GDP GROWTH RATE IN REAL TERMS FOR 1994 IS MAINTAINED, AT 5.5%.
RATES THE FORECAST OF INCREASE IN THE CONSUMER PRICE INDEX (A) AND THE GDP DEFLATOR ARE ALSO KEPT UNCHANGED, AT 8.5% AND 8% RESPECTIVELY.
THE EXTERNAL SECTOR
TOTAL
RECORDED A FURTHER GROWTH OF ABOUT 8% EXPORTS TERMS IN THE FIRST QUARTER OF 1994 OVER A YEAR EARLIER.
IN
REAL
RE-EXPORTS CONTINUED TO PROVIDE THE MAIN DRIVING FORCE FOR OVERALL GROWTH IN EXPORTS AND HAD A NOTABLE INCREASE OF ABOUT 13% REAL TERMS.
THE
IN
IN
CONTRAST,
DOMESTIC
EXPORTS WEAKENED FURTHER
TO
SHOW
A
DECLINE OF ABOUT 9% IN REAL TERMS.
/THE SHARE