2 -
But so far, the larger visible trade deficit had apparently not given rise to any significant pressure on Hong Kong's external account, and had not exerted any noticeable impact on the exchange rate of the Hong Kong dollar. A continuing surplus in invisible trade should still be able to offset the deficit in visible trade.
Indicative of some easing in labour market conditions since the beginning of this year, the seasonally adjusted unemployment rate rose to 2.8% in the first quarter (3.0% in the period February to April 1995).
There was an on-going job mismatch in the market, as the skills possessed by many of the workers available for employment were not compatible with those required in the job vacancies.
For those in employment, manpower utilisation remained intensive, as reflected by the underemployment rate staying low at 1.4% in the first quarter, and by the fact that the proportion of people working longer hours was higher than in the first quarter of last year.
Sentiment in the residential property market had improved somewhat after the Lunar New Year.
Response to pre-completion sales in a number of conveniently located residential developments was favourable.
Trading activity showed some revival, although it was considerably below the peak level recorded in the early part of last year.
earlier.
Flat prices by end-March were on average 15% down from the peak a year
In April, consumer price inflation as measured by the CPI(A) accelerated slightly, while that as measured by the CPI(B) and Hang Seng CPI decelerated slightly.
The April data showed that the differential movements in the three CPIs had narrowed from the preceding year, and that their rates of increase were all within the single-digit range.
The external sector
The growth rate of total exports picked up further, to about 18% in real terms in the first quarter of 1995 over a year earlier.