XN000022-1987-08-25 — Page 2

TUESDAY, AUGUST 25, 1987

RAPID ECONOMIC GROWTH IN THE FIRST HALF OF 1987

THE HONG KONG ECONOMY GREW RAPIDLY IN THE FIRST HALF ACCORDING TO THE HALF-YEARLY ECONOMIC REPORT RELEASED BY THE SERVICES BRANCH OF THE GOVERNMENT SECRETARIAT TODAY (TUESDAY).

OF 1987,

ECONOMIC

WHILE DOMESTIC DEMAND HAD

STRENGTHENED,

THE EXTERNAL

SECTOR

STILL PROVIDED THE MAIN IMPETUS TO GROWTH.

MOMENTUM

OF DOMESTIC EXPORTS HAD BREN BY JUNE, THE GROWTH

OF 1987 WITH THE SUSTAINED FOR 16 MONTHS. COMPARING THE FIRST HALF

CENT SAME PERIOD IN 1986, DOMESTIC EXPORTS INCREASED BY ABOUT 27 PBR IN REAL TERMS.

RE-EXPORTS GREW BY ABOUT 49 PER CENT IN

REAL TERMS OVER THE

SAME PERIOD.

THE

FIGURES

ON

IN THE POSITIONS ORDER-BOOK

OF IMPORTS

RAW MATERIALS AND EXPORT ECONOMY'S

PERFORMANCE 19

LATEST MANUFACTURING SECTOR AND ON RETAINED SEMI-MANUFACTURES SUGGEST THAT THE LIKELY TO REMAIN GOOD IN THE COMING MONTHS.

PRIVATE CONSUMPTION EXPENDITURE DEMAND, AS REGARDS DOMESTIC SHOWED SIGNIFICANT GROWTH IN THE FIRST HALF OF 1987 COMPARED WITH FIRST HALF OF 1986.

THE

OF CONSUMER GOODS AS AN INDICATION OF THIS, RETAINED IMPORTS

AND 7 PER CENT 10 PER CENT GREW BY ABOUT FOODSTUFFS AND OF

RETAIL RESPECTIVELY IN REAL TERMS OVER THIS PERIOD, AND THE VOLUME OF SALES REGISTERED A SIGNIFICANT INCREASE.

BY AN

OF

OF GREW BY

INVESTMENT EXPENDITURE ALSO GREW STRONGLY, AS REFLECTED

RETAINED IMPORTS INCREASE OF ABOUT 25 PER CENT IN REAL TERMS IN

RETAINED IMPORTS CAPITAL GOODS OVER THE SAME PERIOD. AMONG THESE,

IN THE MANUFACTURING INDUSTRIAL MACHINERY FOR USE ABOUT 19 PER CENT IN REAL TERMS.

SECTOR

TIGHT LABOUR INCREASES IN INCREASED DOMESTIC INFLATION, AS REMAINED WITHIN

THE BUOYANT ECONOMIC PERFORMANCE HAD LED TO VERY RESULT OF WHICH SIGNIFICANT MARKET CONDITIONS, AS A

THERE WERE ALSO OCCURRED. WAGES AND SALARIES INFLATIONARY PRESSURES. BUT THE RATE OF CONSUMER PRICE REFLECTED BY MOVEMENTS IN THE CONSUMER PRICE INDICES, TOLERABLE LIMITS.

THE REPORT NOTES THAT THE STRONG OVERALL DEMAND FOR LABOUR

THE UNEMPLOYMENT RATE. THE LED TO A FURTHER DECLINE IN ADJUSTED UNEMPLOYMENT RATE IN THE SECOND QUARTER OF

HAD

SEASONALLY 1987 WAS AT AN

IN PER CENT

THE HISTORIC LOW OF 1.8 PER CENT, PREVIOUS QUARTER AND 3 PER CENT IN THE SECOND QUARTER OF 1986.

COMPARED WITH

2.1

THE UNDEREMPLOYMENT