XN000022-1984-09-14 — Page 5

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FRIDAY, SEPTEMBER 14, 1984

+THE COMPARATIVE FIGURE IN 1983-84 WAS 19.4 PER CENT. PUBLIC, HAVING HAD TO MEET INCREASED TAXATION, WILL WELCOME THIS FURTHER EVIDENCE THAT GOVERNMENT IS PLAYING ITS PART IN MOVING BACK TO BALANCED BUDGET,+ SIR JOHN SAID.

THE

THE PUBLIC SECTOR'S SHARE OF BUILDING AND CONSTRUCTION OUTPUT IS NEVERTHELESS NOW FORECAST TO INCREASE FROM 48 PER CENT IN 1983 TO 52 PER CENT IN 1984, LARGELY AS A RESULT OF THE CONTINUED CONTRACTION IN PRIVATE SECTOR ACTIVITY IN THIS FIELD, HE ADDED.

WITH THE GROWTH RATE OF TOTAL EXPORTS NOW FORECAST TO EXCEED THAT OF IMPORTS IN VALUE TERMS, SIR JOHN EXPECTED THE VISIBLE TRADE GAP TO NARROW, FROM NINE PER CENT IN 1983 TO 5.3 PER CENT IN 1984.

NOTING THAT TRADE REPRESENTS ABOUT 163 PER CENT OF HONG KONG'S HE STRESSED THAT A MAJOR FOCUS OF ALL GOVERNMENT POLICY MUST BE THE PROMOTION OF EXPORTS.

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LOOKING AHEAD TO 1985 AND 1986, SIR JOHN SAID THAT THE WORLD ECONOMY WAS EXPECTED TO CONTINUE TO GROW, THOUGH PROBABLY AT A SLOWER PACE.

IN PARTICULAR, A SLOWING DOWN IN THE GROWTH RATE OF THE US ECONOMY WAS WIDELY PREDICTED, WITH CONSEQUENTIAL EFFECTS ON HONG KONG'S EXPORT GROWTH, HE SAID. BUT HE ADDED THAT TO SOME EXTENT, THIS WOULD BE BALANCED BY INCREASED EXPORTS TO CHINA.

+I MUST UNDERLINE THE RAPID AND SIGNIFICANT EXPANSION OF HONG KONG'S TRADING AND COMMERCIAL LINKS WITH CHINA. I AM SURE THAT THIS TREND WILL CONTINUE. I BELIEVE INDEED THAT THERE IS CONSIDERABLE SCOPE FOR INCREASING LINKS AND COOPERATION, TO THE BENEFIT OF BOTH ECONOMIES, SIR JOHN SAID.

JOBLESS RATE DECLINES ***

THE UNEMPLOYMENT AND UNDEREMPLOYMENT SITUATION IMPROVED SIGNIFICANTLY IN THE MAY-JULY QUARTER, COMPARED WITH THE EARLY PART OF THIS YEAR, ACCORDING TO THE LATEST LABOUR FORCE STATISTICS RELEASED TODAY BY THE CENSUS AND STATISTICS DEPARTMENT.

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE FOR MAY-JULY WAS 3.4 PER CENT, WHICH COMPARES WITH 4.1 PER CENT FOR THE FEBRUARY-APRIL QUARTER AND 3.9 PER CENT FOR THE SAME QUARTER OF 1983.

"THE DECREASES