XN000022-1987-05-26 — Page 8

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TUESDAY, MAY 26, 1987

SECOND, REFLECTING AN EXCESS DEMAND FOR OFFICE ACCOMMODATION, OFFICE RENTALS INCREASED FURTHER IN THE FIRST QUARTER OF 1987. THIRD, THE UPWARD TREND IN THE PRICES AND RENTALS FOR SHOPPING SPACE, ESPECIALLY FOR PRIME LOCATIONS, HAS CONTINUED INTO THE FIRST QUARTER OF 1987. FOURTH, WITH REGARD TO INDUSTRIAL PROPERTY, THE BUOYANT PERFORMANCE OF THE MANUFACTURING SECTOR IN RECENT MONTHS HAS HELPED MAINTAIN DEMAND AT A HIGH LEVEL.

ON PRICES, THE REPORT SAYS THAT THE RATE OF INFLATION PICKED UP TOWARDS THE END OF 1986 AND INCREASED FURTHER IN THE FIRST QUARTER OF 1987.

THE ACCELERATION IN THE RATE OF INFLATION WAS ATTRIBUTABLE TO TWO MAIN FACTORS. FIRST, FOLLOWING THE STRONG REVIVAL IN ECONOMIC ACTIVITY DURING 1986, AGGREGATE DEMAND WITHIN THE ECONOMY WAS EXERTING GREATER PRESSURE ON THE AGGREGATE SUPPLY OF RESOURCES. SECOND, THE DEPRECIATION OF THE HONG KONG DOLLAR AGAINST MOST MAJOR CURRENCIES RESULTED IN INCREASE IN IMPORT PRICES DURING 1986, THE EFFECT OF WHICH IS NOW BEING TRANSMITTED TO THE RETAIL LEVEL.

HOWEVER SOFT WORLD COMMODITY PRICES IN GENERAL AND STABLE IMPORT PRICES FOR CHINESE GOODS HAVE EXERTED SOME DAMPENING EFFECT ON THE OVERALL UPWARD TREND IN CONSUMER PRICES.

THE FIRST QUARTER ECONOMIC REPORT 1987 IS NOW ON SALE AT $10.00 A COPY.

APRIL PROVISIONAL TRADE FIGURES PUBLISHED

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EXTERNAL TRADE CONTINUED TO SHOW RAPID GROWTH IN APRIL 1987 ACCORDING TO THE PROVISIONAL TRADE FIGURES PUBLISHED TODAY (TUESDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

THE VALUE OF DOMESTIC EXPORTS IN APRIL 1987, AT $14 539 MILLION, INCREASED BY 29.1 PER CENT OR $3 191 MILLION OVER APRIL 1986, WHILE THE VALUE OF RE-EXPORTS INCREASED BY 49.1 PER CENT OR $4 695 MILLION TO $14 255 MILLION.

TAKING DOMESTIC EXPORTS AND RE-EXPORTS TOGETHER, THE VALUE OF TOTAL EXPORTS, AT $28 794 MILLION, WAS 37.7 PER CENT OR $7 886 MILLION HIGHER THAN IN APRIL 1986. THE VALUE OF IMPORTS GREW BY 35.6 PER CENT OR $8 012 MILLION OVER APRIL 1986 TO $30 489 MILLION.

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