XN000022-1983-02-23 — Page 12

WEDNESDAY, FEBRUARY 23, 1983

10

THE GROWTH RATE OF THE VALUE OF TOTAL EXPORTS, AT FOUR PER CENT WAS SLIGHTLY FASTER THAN THAT OF IMPORTS, AT THREE PER CENT, THEREBY SLIGHTLY NARROWING THE VISIBLE TRADE GAP. THIS, MR EREMRIDGE SAID, PROBABLY CONTRIBUTED TO THE RELATIVE FIRMNESS OF THE HONG KONG DOLLAR IN THE FIRST HALF OF THE YEAR, IN TERMS OF THE TRADE WEIGHTED EXCHANGE RATE INDEX, WHICH APPRECIATED BY 4.4 PER CENT.

THE RATE OF INFLATION, IN TERMS OF CONSUMER PRICES, DECLINED FROM 12 PER CENT IN THE FIRST HALF TO NINE PER CENT IN THE SECOND.

THE INCREASE OVER THE WHOLE YEAR WAS 10.6 PER CENT, A SIGNIFICANT IMPROVEMENT OVER THE 16 PER CENT INCREASE IN 1980 AND 15 PER CENT IN 1981.

AS THE RATE OF INCREASE IN CONSUMER PRICES SLOWED DOWN, REAL WAGES OF MOST EMPLOYEES SHOWED SOME INCREASE, EXCEPT FOR THOSE IN THE MANUFACTURING SECTOR.

REFLECTING THE WEAK DOMESTIC EXPORT PERFORMANCE, EMPLOYMENT IN THE MANUFACTURING SECTOR DECLINED, BUT THIS WAS LARGELY OFFSET BY AN INCREASE IN EMPLOYMENT IN THE TERTIARY SERVICES SECTORS, RESULTING IN FAIRLY STABLE OVERALL EMPLOYMENT. THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE REMAINED STEADY AT ABOUT 3.5 PER CENT IN THE FIRST HALF OF THE YEAR, AND INCREASED TO FOUR PER CENT IN THE SECOND HALF. UNDEREMPLOYMENT INCREASED TO AROUND 1.7 PER CENT OF THE LABOUR FORCE.

THE GROWTH RATE OF LABOUR PRODUCTIVITY ALSO SLOWED DOWN TO ABOUT TWO PER CENT, HE SAID.

+WE MUST NOT BE UNDULY DISCOURAGED BY ONE YEAR'S DISAPPOINTING PERFORMANCE, A PERFORMANCE STILL BETTER THAN THAT OF MOST LARGER ECONOMIES -- FOR EXAMPLE THE USA, UK AND GERMANY, MR BREMRIDGE SAID.

FS PROPOSES BUDGET DAY IN END OF MARCH

****

THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE SAID HE WILL BE CONSULTING THE LEGISLATIVE COUNCIL ON HIS PROPOSAL TO DEFER BUDGET DAY TO THE LAST WEDNESDAY IN MARCH IN THE FUTURE.

MR BREMRIDGE SAID BECAUSE BUDGET DAY IS SCHEDULED FOR THE LAST WEDNESDAY IN FEBRUARY, AND BECAUSE OF THE NEED TO MEET THE PRINTER'S DEADLINE IF THE DRAFT ESTIMATES OF EXPENDITURE AND OTHER SUPPORTING DOCUMENTS ARE TO BE PRINTED IN TIME, IT IS NECESSARY FOR A CUT-OFF DATE TO BE FIXED IN EARLY DECEMBER, AFTER WHICH IT BECOMES INCREASINGLY DIFFICULT TO MAKE CHANGES.

*THUS, THE REVISED ESTIMATE IS BASED ON FIGURES OF EXPENDITURE LARGELY DETERMINED AFTER ONLY SEVEN MONTHS' PERFORMANCE UP TO THE END OF OCTOBER, HE SAID.

/+TO THE