THURSDAY, MAY 21, 1981
THE REPORT SHOWS THAT THE ENTREPOT TRADE CONTINUED TO EXPAND RAPIDLY IN THE FIRST QUARTER OF THIS YEAR. IMPORTS WERE GROWING RAPIDLY TOO BUT NOT AS RAPIDLY AS TOTAL EXPORTS (DOMESTIC EXPORTS PLUS RE-EXPORTS), SO THAT THE VISIBLE TRADE +GAP+, THAT IS THE PROPORTION OF THE VALUE OF IMPORTS NOT COVERED BY THE VALUE OF TOTAL EXPORTS, IN THE FIRST QUARTER OF THIS YEAR WAS NARROWER THAN THAT OF THE FIRST QUARTER OF 1980.
ON THE FINANCIAL SECTOR, THE REPORT INDICATES THAT THE GROWTH RATE OF THE MONEY SUPPLY REMAINED FAIRLY RAPID IN THE FIRST QUARTER OF 1981. AS IN 1980, THE GROWTH IN THE MONEY SUPPLY WAS ATTRIBUTABLE MAINLY TO THE EVEN MORE RAPID GROWTH RATE IN LOANS AND ADVANCES WHICH WAS RELATED TO BUOYANT ACTIVITY IN VARIOUS SECTORS OF THE ECONOMY GENERALLY, THE EXCHANGE VALUE OF THE HONG KONG DOLLAR REMAINED FAIRLY STABLE IN THE FIRST QUARTER OF 1981.
ON THE LABOUR SECTOR, THE REPORT REFRAINS FROM TAKING A DEFINITIVE VIEW, AS STATISTICS REFERRING TO MARCH 1981 ARE NOT YET AVAILABLE. NEVERTHELESS, THE REPORT SUGGESTS THAT THE GROWTH RATE OF THE SUPPLY OF LABOUR HAS REMAINED RAPID AS A RESULT, DIRECTLY AND INDIRECTLY, OF IMMIGRATION. HOWEVER, THE OVERALL DEMAND FOR LABOUR HAS ALSO CONTINUED TO GROW, ALTHOUGH IT MIGHT NOT HAVE BEEN RAPID ENOUGH TO ABSORB COMPLETELY THE ADDITIONAL SUPPLY OF LABOUR. THE REPORT POINTS OUT THAT, IN CONSEQUENCE, WAGE RATES IN THE MANUFACTURING SECTOR RECORDED NO SIGNIFICANT INCREASE IN REAL TERMS IN 1980.
ON ACTIVITY IN THE MANUFACTURING SECTOR, THE REPORT SAYS FIGURES ON ELECTRICITY CONSUMPTION DO NOT SUGGEST ANY SIGNIFICANT GROWTH. IT, HOWEVER, POINTS OUT THAT THERE WAS ENCOURAGING ACCELERATION IN THE GROWTH RATE OF RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES, WHICH SUGGESTS MORE BUOYANT ACTIVITY IN THE MANUFACTURING SECTOR IN THE MONTHS AHEAD.
ON ACTIVITY IN THE PROPERTY SECTOR, THE REPORT NOTES THAT IN TERMS OF TOTAL USABLE FLOOR AREA OF BUILDINGS COMPLETED, THERE WAS A VERY SUBSTANTIAL INCREASE IN THE SUPPLY OF NEW COMMERCIAL (INCLUDING OFFICES AND SHOPS) AND INDUSTRIAL SPACE IN THE FIRST QUARTER OF 1981 COMPARED WITH THE CORRESPONDING QUARTER OF 1980.
PRICES AND RENTALS OF RESIDENTIAL AND COMMERCIAL PROPERTY WERE RISING MUCH LESS RAPIDLY IN THE FIRST QUARTER OF 1981 THAN
IN 1980 WHILE PRICES AND RENTALS OF INDUSTRIAL PROPERTY CONTINUED TO INCREASE MODERATELY. PROBABLY A REFLECTION OF THE SITUATION THAT THE DEMAND FOR PROPERTY AND FOR LAND WAS GRADUALLY BEING SATISFIED BY INCREASED SUPPLY, THE PRESSURE OF DEMAND FOR LAND HAS ALSO EASED AND CONSEQUENTLY LAND PRICES APPEARED TO HAVE LEVELLED OFF.
CN PRICES, THE REPORT OBSERVES THAT THE DEPRECIATION OF THE EXCHANGE VALUE OF THE HONG KONG DOLLAR DURING 1980 DID NOT EXERT ANY UNFAVOURABLE EFFECTS ON THE RATE OF INCREASE IN PRICES, OVER AND ABOVE THOSE ARISING FROM WORLD INFLATION. WHILE WORLD PRICES WERE STILL INCREASING RAPIDLY, DOMESTIC INFLUENCES ON THE RATE OF INCREASE IN PRICES APPEARED TO BE FAVOURABLE AS THERE WERE NO NOTICEABLE IMBALANCE BETWEEN THE DEMAND FOR DOMESTIC RESOURCES AND THE SUPPLY OF THEM. REFLECTING THESE DEVELOPMENTS, PRICES IN THE FIRST QUARTER OF 1981 IN GENERAL INCREASED MODERATELY.
THE FIRST QUARTER ECONOMIC REPORT 1981 IS NOW ON SALE AT $5 A COPY.
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