FRIDAY, AUGUST 26, 1994

HALF-YEARLY ECONOMIC REPORT 1994

* * * * *

THE HALF-YEARLY

REPORT 1994 ECONOMIC

WAS

BY RELEASED

THE

GOVERNMENT TODAY (FRIDAY).

FOLLOWING IS A SUMMARY OF THE MAIN POINTS:

THE HONG KONG ECONOMY CONTINUED TO SHOW A ROBUST GROWTH THE FIRST HALF OF 1994, WITH A BROADLY SIMILAR GROWTH IN THE FIRST AND THE SECOND QUARTERS.

IN

PACE

MARKEDLY IN THE IN THE EXTERNAL SECTOR, RE-EXPORTS ROSE

THE GROWTH RATE FIRST

ALTHOUGH

HAD HALF OF THIS YEAR,

THE EARLIER DECLINE IN DECELERATED FROM THE PRECEDING YEAR. DOMESTIC EXPORTS SEEMED TO HAVE BOTTOMED OUT IN RECENT MONTHS. THE OVERALL PERFORMANCE IN EXPORTS OF GOODS WAS BETTER IN THE SECOND THAN IN THE FIRST QUARTER. GENERALLY CONCURRENTLY, A NOTABLE GROWTH WAS RECORDED FOR EXPORTS SERVICES.

WAS UNDERPINNED

BY A SOLID

GROWTH

OF

IN

LOCALLY, DEMAND CONSUMER SPENDING PARTICULARLY IN THE FIRST QUARTER, AS WELL ON THE MAJOR AS BY VERY INTENSIVE CONSTRUCTION ACTIVITY

THERE WAS ALSO A PICK-UP IN INFRASTRUCTURAL PROJECTS,

INVESTMENT SPENDING ON MACHINERY AND EQUIPMENT.

THE FIRST TIGHT. AS THE WAS BOTH THE

IN LINE WITH THE STEADY GROWTH IN ECONOMIC ACTIVITY, OVERALL EMPLOYMENT SHOWED A FURTHER NOTABLE INCREASE IN HALF OF 1994. THE LABOUR MARKET REMAINED RELATIVELY MORE ABUNDANT LABOUR SUPPLY SEEN MATCHED BY A SUSTAINED STRONG DEMAND FOR LABOUR. UNEMPLOYMENT AND UNDEREMPLOYMENT RATES DRIFTED LOWER.

RECENTLY

AND

IN REDUCED

THE RESIDENTIAL PROPERTY MARKET COOLED DOWN CONSIDERABLY THE SECOND

THE ESCALATED PRICES QUARTER.

RESTRAIN DEMAND. A AFFORDABILITY OF FLATS HAD SET IN TO

SPECULATION PACKAGE OF MEASURES AIMED AT DAMPENING PROPERTY

HOUSING

BY ANNOUNCED AND INCREASING GOVERNMENT IN EARLY JUNE.

SUPPLY WAS

INDEX

THE

(A) THE

PRESSURES, SHARPLY HIGHER SOUTH

BY THE CONSUMER PRICE INFLATION AS MEASURED MODERATED TO AN AVERAGE OF 7.5% IN THE FIRST HALF OF YEAR.

EXTERNALLY-INDUCED INFLATIONARY SPECIFICALLY THOSE BEING REFLECTED IN THE PRICES OF VEGETABLES CONSEQUENTIAL TO THE FLOODING IN CHINA, HAVE ALREADY LIFTED CONSUMER PRICE INFLATION IN JULY. ALONG WITH SUSTAINED MARKED INCREASES IN HOUSING RENTALS AND PRICES OF VARIOUS CONSUMER SERVICES, THE INFLATION RATE LIKELY TO EDGE HIGHER IN THE LATTER PART OF THE YEAR.

IS

/- THE CENSUS

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