7
FRIDAY, MAY 27, 1994
THE SHARE OF RE-EXPORTS IN THE VALUE OF TOTAL EXPORTS THUS ROSE FURTHER, TO 82% IN THE FIRST QUARTER OF 1994, FROM 78% IN THE SAME QUARTER IN 1993.
REMAINED
RE-EXPORTS TO MOST OF THE MAJOR OVERSEAS MARKETS ROBUST IN THE FIRST QUARTER OF 1994, THOUGH WITH SOME DECELERATION GROWTH.
IN
ON RE-EXPORTS TO CHINA, THE LESS RAPID GROWTH WAS MAINLY DUE TO CHINA'S LOCAL DEMAND SLOWING DOWN AS THE IMPACT OF THE EARLIER ECONOMIC RESTRAINT MEASURES BY THE CHINESE GOVERNMENT FILTERED THROUGH.
DOMESTIC EXPORTS TO MOST OF THE MAJOR MARKETS WERE ON A DOWNTREND, AFFECTED PARTLY BY THE ONGOING SHIFT ΤΟ RE-EXPORTS AND PARTLY BY SLACK DEMAND.
BY
SUPPORTED MAINLY BY THE GROWTH IN RE-EXPORTS, IMPORTS ROSE ABOUT 9% IN REAL TERMS IN THE FIRST QUARTER OF 1994 OVER A YEAR EARLIER. RETAINED IMPORTS, HOWEVER, SHOWED ONLY A MODERATE INCREASE OF ABOUT 2% IN REAL TERMS.
A VISIBLE TRADE DEFICIT OF $13.9 BILLION, EQUIVALENT TO 5% OF THE VALUE OF IMPORTS, WAS RECORDED IN THE FIRST QUARTER OF THIS YEAR. THIS COMPARED WITH A DEFICIT OF $10.1 BILLION, EQUIVALENT TO 4% OF THE VALUE OF IMPORTS, IN THE SAME QUARTER LAST YEAR.
DOMESTIC DEMAND
BY THE STRONG FULL EMPLOYMENT AND
DOMESTIC DEMAND CONTINUED TO BE UNDERPINNED GROWTH IN CONSUMER SPENDING AMIDST VIRTUALLY RISING REAL INCOMES.
THE VOLUME OF RETAIL SALES ROSE MARKEDLY, BY 12% IN THE FIRST QUARTER OF 1994 OVER A YEAR EARLIER.
RETAINED IMPORTS OF CONSUMER GOODS HOWEVER CONSOLIDATED, SHOWING A 1% FALL IN REAL TERMS.
THIS SITUATION SUGGESTS THAT THERE WAS PROBABLY SOME DEPLETION IN STOCKS OF CONSUMER GOODS IN RECENT MONTHS. THE DEMAND FOR CONSUMER SERVICES WAS ROBUST IN THE LOCAL MARKET.
THE GROWTH IN FIXED CAPITAL INVESTMENT PICKED UP SOMEWHAT IN THE FIRST QUARTER.
ON BUILDING AND CONSTRUCTION, ALTHOUGH PRIVATE SECTOR BUILDING ACTIVITY REMAINED SUBDUED, PUBLIC SECTOR CONSTRUCTION ACTIVITY WAS INTENSE AS WORK ON A NUMBER OF MAJOR INFRASTRUCTURAL PROJECTS PROGRESSED.
ON MACHINERY AND EQUIPMENT, FOLLOWING A 4% DECLINE IN THE SECOND HALF OF 1993, RETAINED IMPORTS OF CAPITAL GOODS RECORDED VIRTUALLY NO CHANGE IN REAL TERMS IN THE FIRST QUARTER OF 1994 OVER A YEAR EARLIER.
OVERALL, THE SUSTAINED RISE IN EXPENDITURE ON BUILDING AND CONSTRUCTION SHOULD HAVE ADEQUATELY OFFSET THE CONSOLIDATION IN EXPENDITURE ON MACHINERY AND EQUIPMENT.
/THE LABOUR