XN000022-1984-05-24 — Page 2

THURSDAY, MAY 24, 1984

DOMESTIC EXPORTS STAY ON UPSWING

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HONG KONG'S DOMESTIC EXPORTS CONTINUED TO EXPAND RAPIDLY IN THE FIRST QUARTER OF THIS YEAR, ACCORDING TO A GOVERNMENT REPORT PUBLISHED TODAY.

THE FIRST QUARTER ECONOMIC REPORT 1984 SHOWS THAT THESE EXPORTS INCREASED BY 51 PER CENT IN VALUE TERMS OR 30 PER CENT IN REAL TERMS OVER THE SAME QUARTER OF LAST YEAR.

GIVEN THE STRONG ORDER-BOOK POSITIONS OF MANY INDUSTRIES AND THE SUBSTANTIAL REAL-TERM INCREASE IN RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES IN THE FIRST QUARTER, THE SHORT-TERM PROSPECTS FOR DOMESTIC EXPORTS REMAIN ENCOURAGING, THE REPORT SAYS.

DOMESTIC DEMAND IN THE SAME PERIOD ALSO IMPROVED MODERATELY OVER THE FIRST QUARTER OF 1983, WITH RETAINED IMPORTS OF CAPITAL GOODS GROWING BY ABOUT 14 PER CENT IN REAL TERMS, AND OF CONSUMER GOODS BY ABOUT 11 PER CENT.

ON THE LABOUR FORCE FRONT, THE REPORT POINTS OUT THAT UNEMPLOYMENT AND UNDEREMPLOYMENT AS A WHOLE IMPROVED SUBSTANTIALLY OVER THE FIRST QUARTER OF 1983, BUT REMAINED LARGELY STABLE, COMPARED WITH THE FOURTH QUARTER OF LAST YEAR.

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE IN THE FIRST QUARTER OF 1984 WAS 4.0 PER CENT, COMPARED WITH 5.1 PER CENT IN THE FIRST QUARTER AND 4.1 PER CENT IN THE FOURTH QUARTER OF 1983.

THE UNDEREMPLOYMENT RATE IN THE FIRST QUARTER OF THIS YEAR WAS 1.5 PER CENT, COMPARED WITH 2.5 PER CENT IN THE FIRST QUARTER AND 1.4 PER CENT IN THE FOURTH QUARTER OF LAST YEAR.

THE RATE OF INFLATION (AS MEASURED BY THE CONSUMER PRICE INDEX (A)) SLOWED DOWN DURING THE FIRST QUARTER, FROM A YEAR-ON-YEAR RATE OF INCREASE OF 12.6 PER CENT IN JANUARY TO 9.3 PER CENT IN MARCH.

THE REPORT COMMENTS THAT THE ADVERSE INFLUENCE ON IMPORT PRICES OF THE DEPRECIATION OF THE HONG KONG DOLLAR UP TO SEPTEMBER 24, 1983 MAY HAVE LARGELY FED THROUGH TO THE RETAIL LEVEL.

THE CONSUMER PRICE INDEX (A) WAS ON AVERAGE 11.1 PER CENT HIGHER IN THE FIRST QUARTER OF 1984 THAN IN THE FIRST QUARTER OF 1983; THE EQUIVALENT RATE FOR THE FOURTH QUARTER OF 1983 WAS 11.9 PER CENT.

THE REPORT ASSESSES ECONOMIC DEVELOPMENTS IN THE FIRST QUARTER OF 1984 USING SUCH STATISTICS AS ARE AVAILABLE.

IT ALSO UPDATES THE ANALYSIS OF THE ECONOMY IN THE 1983 ECONOMIC BACKGROUND PUBLISHED ON BUDGET DAY.

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