XN000022-1977-09-12 — Page 6

MONDAY, SEPTEMBER 12, 1977

COMMENTING ON THE REPORT, A GOVERNMENT SPOKESMAN SAID THAT THE HONG KONG ECONOMY IN 1977 IS UNDERGOING THE LATER PHASE OF A VERY RAPID RECOVERY.

HE SAID THAT AS IT USUALLY TAKES SOME TIME FOR DOMESTIC DEMAND TO REACT TO CHANGES IN INCOME, THE PRESENT HIGH RATE OF INCREASE IN CONSUMPTION EXPENDITURE AND INVESTMENT EXPENDITURE, IN PARTICULAR IN BUILDING AND CONSTRUCTION, ARE NOT UNEXPECTED.

HE SAID THAT AS THE GROWTH IN EXPORTS IN 1977 WAS SLOW, DOMESTIC ACTIVITY HAS PROVIDED THE MAIN STIMULANT FOR THE ECONOMY SO FAR THIS YEAR.

+HOWEVER, IN THE LONG RUN, ECONOMIC GROWTH IN HONG KONG MUST DEPEND ON THE GROWTH IN EXPORTS+, HE ADDED.

THE HALF-YEARLY ECONOMIC REPORT, WHICH IS THE UP-TO-DATE VERSION OF THE ECONOMIC BACKGROUND TO THE 1977-78 BUDGET, WILL SHORTLY BE AVAILABLE FOR SALE AT THE GOVERNMENT PUBLICATIONS CENTRE.

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