XN000022-1985-11-25 — Page 2

MONDAY, NOVEMBER 25, 19%

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SLOWER EXPORT GROWTH, LOW INFLATION IN THIRD QUARTER

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RE-EXPORTS GREW BY AN ESTIMATED 23 PER CENT IN REAL TERMS IN THE THIRD QUARTER OF 1985 COMPARED WITH THE SAME PERIOD LAST YEAR WHILE DOMESTIC EXPORTS DECREASED BY AN ESTIMATED 11 PER CENT IN REAL TERMS, SO THAT TOTAL EXPORTS GREW BY AN ESTIMATED ONE PER CENT IN REAL TERMS, ACCORDING TO THE THIRD QUARTER ECONOMIC REPORT 1985 PUBLISHED TODAY BY THE GOVERNMENT.

OVER THIS PERIOD THE RATES OF UNEMPLOYMENT AND INFLATION WERE RELATIVELY LOW.

REFLECTING THE RELATIVELY WEAK DOMESTIC DEMAND, RETAINED IMPORTS OF CONSUMER GOODS WERE ESTIMATED TO SHOW NO CHANGE IN REAL TERMS IN THE THIRD QUARTER OF 1985 OVER THE SAME QUARTER LAST YEAR WHILE RETAINED IMPORTS OF CAPITAL GOODS DECLINED BY ABOUT 14 PER CENT IN REAL TERMS.

THE REPORT NOTES THAT THE UNEMPLOYMENT AND UNDEREMPLOYMENT SITUATION FOR THE LABOUR FORCE AS A WHOLE DETERIORATED SLIGHTLY IN THE THIRD QUARTER COMPARED WITH THE SECOND QUARTER OF 1985, BUT WAS LITTLE CHANGED FROM THE FIRST QUARTER.

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE IN THE THIRD QUARTER OF 1985, AT 3.4 PER CENT, WAS HIGHER THAN IN THE SECOND QUARTER, AT 3.0 PER CENT, BUT ROUGHLY THE SAME AS IN THE FIRST QUARTER, AT 3.3 PER CENT.

THE UNDEREMPLOYMENT RATE IN THE THIRD QUARTER OF THIS YEAR WAS 1.3 PER CENT, COMPARED WITH 1.0 PER CENT IN THE SECOND QUARTER AND 1.3 PER CENT IN THE FIRST QUARTER.

THE RATE OF INFLATION REMAINED AT A RELATIVELY LOW LEVEL DURING THE FIRST THREE QUARTERS OF 1985. THE YEAR-ON-YEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX (A) AVERAGED 3.0 PER CENT IN THE THIRD QUARTER OF 1985, AGAINST 3.3 PER CENT IN THE PREVIOUS QUARTER AND 8.6 PER CENT RECORDED IN THE THIRD QUARTER OF 1984.

THE CONSUMER PRICE INDEX (B) WAS ON AVERAGE 3.3 PER CENT HIGHER

WHILE IN THE THIRD QUARTER OF 1985 THAN IN THE THIRD QUARTER OF 1984, THE HANG SENG CONSUMER PRICE INDEX WAS 3.4 PER CENT HIGHER.

THE REPORT ASSESSES ECONOMIC DEVELOPMENTS IN THE THIRD QUARTER OF 1985 USING SUCH STATISTICS AS ARE AVAILABLE. IT ALSO UPDATES THE ANALYSIS OF THE ECONOMY WHICH WAS GIVEN IN THE HALF-YEARLY ECONOVIC

APART FROM GIVING AN OVERALL VIEW, REPORT 1985 PUBLISHED IN AUGUST.

THE REPORT ALSO CONTAINS INDIVIDUAL CHAPTERS ON THE EXTERNAL SECTOK, THE FINANCIAL SECTOR, THE LABOUR SECTOR, ACTIVITY IN SELECTED SECTORS AND PRICES.

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