XN000022-1983-11-24 — Page 5

1983

-4

SUCH IMPRESSIVE GROWTH RATES WERE LARGELY DUE TO THE RECOVERY IN THE US ECONOMY AND THE IMPROVEMENT IN ECONOMIC PERFORMANCES OF A NUMBER OF OTHER MAJOR EXPORT MARKETS.

THE DEPRECIATION OF THE HONG KONG DOLLAR HAS ALSO ENHANCED HONG KONG'S EXTERNAL COMPETITIVENESS.

DOMESTIC DEMAND, HOWEVER, REMAINED RELATIVELY WEAK IN THE THIRD QUARTER. WHILE THE STATISTICS ON RETAINED IMPORTS OF CONSUMER GOODS SUGGEST THAT CONSUMER DEMAND REVIVED SOMEWHAT, RETAINED IMPORTS OF CAPITAL GOODS CONTINUED TO FALL.

REFLECTING THE SIGNIFICANT RECOVERY OF THE EXPORT SECTOR, THE UNEMPLOYMENT AND UNDEREMPLOYMENT SITUATION FOR THE LABOUR FORCE AS A WHOLE IMPROVED.

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE FELL TO 3.8 PER CENT IN THE THIRD QUARTER OF 1983, FROM 4.4 PER CENT IN THE SECOND QUARTER AND 5.1 PER CENT IN THE FIRST QUARTER.

THE UNDEREMPLOYMENT RATE ALSO FELL TO 1.6 PER CENT IN THE THIRD QUARTER, COMPARED WITH 1.9 PER CENT IN THE SECOND QUARTER AND 2.5 PER CENT IN THE FIRST QUARTER OF THIS YEAR.

THERE ARE SIGNS THAT, DURING THE THIRD QUARTER, THE UNEMPLOYMENT AND UNDEREMPLOYMENT SITUATION STABILISÉD.

THE RATE OF INFLATION REMAINED RELATIVELY STABLE AT ABOUT

9 PER CENT IN THE THIRD QUARTER OF 1983.

AS INDICATED BY THE CONSUMER PRICE INDEX (A), THE YEAR-ON- YEAR RATE OF INCREASE IN CONSUMER PRICES AVERAGED ABOUT 9.1 PER CENT IN THE THIRD QUARTER, COMPARED WITH 9.4 PER CENT FOR THE FIRST HALF OF THE YEAR.

FURTHER, THE REPORT COMMENTS THAT WHILE THE SHARP DEPRECIATION OF THE HONG KONG DOLLAR IN THE THIRD QUARTER OF THIS YEAR MAY PUSH UP THE RATE OF INFLATION IN EARLY 1984 WHEN THE INCREASE IN IMPORT PRICES GRADUALLY WORKS THROUGH TO THE RETAIL LEVEL, THE CURRENCY STABILISATION MEASURES INTRODUCED IN OCTOBER ARE EXPECTED TO HAVE A DAMPENING EFFECT ON THE RATE OF INFLATION IN DUE COURSE.

APART FROM GIVING AN OVERALL VIEW, THE REPORT ALSO CONTAINS INDIVIDUAL CHAPTERS ON THE EXTERNAL SECTOR, THE FINANCIAL SECTOR, THE LABOUR SECTOR, ACTIVITY IN SELECTED SECTORS AND PRICES.

ON THE EXTERNAL SECTOR, THE YEAR-ON-YEAR GROWTH RATE IN REAL TERMS OF DOMESTIC EXPORTS INCREASED TO ABOUT 19 PER CENT IN THE THIRD QUARTER.

GIVEN THAT THE YEAR-ON-YEAR GROWTH RATE IN REAL TERMS OF RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES INCREASED RAPIDLY IN THE THIRD QUARTER OF THIS YEAR AND THAT THE VOLUME OF ORDERS HELD BY A SELECTION OF LARGE MANUFACTURERS CONTINUED TO BE ENCOURAGING, THE REPORT SAYS THAT IT IS LIKELY THAT DOMESTIC EXPORTS WILL REMAIN STRONG IN THE FOURTH QUARTER.

IMPORTS AND