XN000022-1974-10-16 — Page 77

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Wednesday, October 16, 1974

shortages overseas, and an almost unbelievably rapid rate of world inflation. It represented a truly remarkable achievement

by our manufacturers and exporters.

It is true that this was not without some slackening

of demand in the labour market, and there were in consequence

some whose personal circumstances were a good deal less rosy than

the performance of the economy as a whole might have suggested.

Nevertheless, Hong Kong's competitive position was extremely

This strong and a good deal stronger than a year or two earlier. carried the possibility, even probability, that our exports would

continue to grow at a rapid rate, and with them the gross domestic

product. There was,

therefore, good reason to believe that the

demand for labour would rise again and with it wage levels.

Furthermore, consumer prices, in the autumn of 1973 already showing signs of levelling-off (and even falling in some instances) and so at that time there was every reason to expect

a further improvement in living standards in 1974 across the

whole spectrum of society.

Were

But then, and quite unexpectedly, came the oil crisis. The World economy was knocked off course. After making allowance for the impact on the economy of these new circumstances, by last February it was thought that the gross domestic product in 1974 would increase after all, in real terms by some 4%. Whilst this was substantially less than might otherwise have been the case,

was still by no means insignificant.

The oil shortage in Hong Kong was fairly brief and of little real significance and our industrialists adapted to the situation of shortages and changes in the supplies and prices

/of oil-based

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