FRIDAY, AUGUST 26, 1994

MORE GENERALLY, AMIDST TIGHTER MARKET CONDITIONS, WORLD

AND COMMODITY

PRODUCT PRICES CAN BE EXPECTED TO RISE FURTHER. EFFECT OF THE SHARP APPRECIATION OF THE JAPANESE YEN ON THE PRICES HONG KONG'S IMPORTS FROM JAPAN WILL CONTINUE TO FILTER THROUGH.

THE PERSISTENTLY HIGH INFLATION IN CHINA COULD ALSO HAVE INDIRECT IMPACT VIA THE PRICES OF HONG KONG'S IMPORTS FROM CHINA.

LOCALLY,

THE

OF

AN

MORE INFLATIONARY PRESSURES WILL CONTINUE TO BE FELT STRONGLY IN HOUSING RENTALS, TRANSPORT FARES AND CHARGES FOR THE VARIOUS CONSUMER SERVICES.

HAVING REGARD TO BOTH THE EXTERNAL AND THE DOMESTIC FACTORS, HALF CONSUMER PRICE INFLATION IS ENVISAGED TO BE HIGHER IN THE SECOND

YEAR

AS OF THE

THAN IN THE FIRST HALF. BUT AVERAGING FOR 1994

A THE EARLIER FORECAST OF 8.5% FOR THE CPI(A) SHOULD WHOLE,

STILL BE

APPROPRIATE.

THE

GOVERNMENT COPY.

HALF-YEARLY BCONOMIC REPORT 1994 IS NOW ON SALE AT THE PUBLICATIONS CENTRE IN CONNAUGHT PLACE, CENTRAL, AT $50

THE UPDATED FORECASTS ARK SUMMARISED IN THE FOLLOWING TABLE:.

A

GROWTH RATE IN REAL TERMS OF

PRIVATE CONSUMPTION EXPENDITURE GOVERNMENT CONSUMPTION EXPENDITURE

GROSS DOMESTIC FIXED CAPITAL FORMATION TRANSFER COSTS OF LAND AND BUILDINGS BUILDING AND CONSTRUCTION

PRIVATE SECTOR

PUBLIC SECTOR

REAL ESTATE DEVELOPERS' MARGIN

MACHINERY AND EQUIPMENT

PRIVATE SECTOR

PUBLIC SECTOR

TOTAL EXPORTS OF GOODS

DOMESTIC EXPORTS

RE-EXPORTS

IMPORTS OF GOODS

EXPORTS OF SERVICES

IMPORTS OF SERVICES

GROSS DOMESTIC PRODUCT (GDP) PER CAPITA GDP

GROWTH RATE IN MONRY TERMS OF :

GDP

. PER CAPITA GDP

UPDATED FORECAST

RELEASED ON 26.8.1994

(%)

7

4.4

7.8

0

15.2

5

30

5.8

5

35

11

-4

15

12.5

9

8

5.7

14.1 12.3

/RATE OF

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