XN000022-1988-05-25 — Page 21

WEDNESDAY, MAY 25, 1988

- 19.

FIRST QUARTER ECONOMIC REPORT RELEASED

IN THE FIRST

QUARTER OF 1988, EXPORT GROWTH CONTINUED TO CONTRIBUTE TO THE OVERALL GROWTH OF THE HONG KONG ECONOMY. HOWEVER, RE-EXPORTS FEATURED MORE PROMINENTLY THAN DOMESTIC EXPORTS IN THE RECENT PATTERN OF EXTERNAL TRADE.

THIS IS SHOWN BY THE FIRST QUARTER ECONOMIC REPORT 1988 RELEASED TODAY (WEDNESDAY) BY THE ECONOMIC SERVICES BRANCH OF THE GOVERNMENT SECRETARIAT.

IN THE PROCESS OF PREPARING THIS REPORT, THE BRANCH RECEIVED USEFUL COMMENTS AND ADVICE FROM THE ECONOMIC REVIEW COMMITTEE, WHICH IS CHAIRED BY THE FINANCIAL SECRETARY AND INCLUDES IN ITS MEMBERSHIP EIGHT MEMBERS OF THE LEGISLATIVE COUNCIL.

ACCORDING TO THE REPORT, THE GROWTH RATE OF DOMESTIC EXPORTS HAS SLOWED DOWN SINCE THE THIRD QUARTER OF 1987. IN THE FIRST QUARTER OF 1988, DOMESTIC EXPORTS GREW BY ABOUT 11 PER CENT IN REAL TERMS OVER THE SAME QUARTER LAST YEAR.

AND

CURRENT INFORMATION ON THE ORDER-BOOK POSITIONS OF THE LARGE MANUFACTURERS AND ON RETAINED IMPORTS OF RAW MATERIALS SEMI-MANUFACTURES SUGGESTS THAT DOMESTIC EXPORTS WILL PROBABLY MORE MODERATELY IN THE COMING MONTHS.

GROW

AS REGARDS DOMESTIC DEMAND, THE LATEST FIGURES ON RETAIL SALES INDICATE THAT CONSUMER EXPENDITURE REMAINED STRONG IN THE FIRST TWO MONTHS OF THIS YEAR. COMPARING THE FIRST QUARTER OF 1988 WITH THE SAME QUARTER LAST YEAR, RETAINED IMPORTS OF FOODSTUFFS AND OF CONSUMER GOODS ROSE BY ABOUT 6 PER CENT AND 3 PER CENT RESPECTIVELY IN REAL TERMS.

PROBABLY REFLECTING DELIVERIES FROM ORDERS PLACED EARLIER, RETAINED IMPORTS OF CAPITAL GOODS INCREASED BY ABOUT 10 PER CENT IN REAL TERMS IN THE FIRST QUARTER OF 1988 OVER THE SAME QUARTER LAST YEAR. OF THESE, RETAINED IMPORTS OF INDUSTRIAL MACHINERY FOR USE IN THE MANUFACTURING SECTOR ROSE BY ABOUT 19 PER CENT IN REAL TERMS.

CONTINUED CAPITAL INVESTMENT GROWTH, PARTICULARLY IN THE MANUFACTURING SECTOR, WAS APPARENTLY PROMPTED AT LEAST IN WIDESPREAD LABOUR SHORTAGES.

PART BY

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE IN THE FIRST OF 1988 WAS AT AN HISTORIC LOW OF 1.6 PER CENT. HOWEVER, THIS WAS PARTLY DISTORTED BY A REDUCED LABOUR SUPPLY DURING THE LUNAR NEW YEAR PERIOD, AS SOME JOB SEEKERS TEMPORARILY DROPPED OUT OF LABOUR FORCE. THE UNDEREMPLOYMENT RATE WAS 0.9 PER CENT.

QUARTER

THE

LABOUR SHORTAGES WERE PARTICULARLY ACUTE IN THE BUILDING CONSTRUCTION INDUSTRY.

AND

THE CONSUMER