XN000022-1990-03-07 — Page 17

I

WEDNESDAY, MARCH 7, 1990

NOTABLY ON THE

"ALTHOUGH THE JUNE EVENTS HAD THEIR EFFECT, PROPERTY AND TOURIST-RELATED SECTORS, THE ECONOMY GENERALLY, AND FINANCIAL SECTOR IN PARTICULAR, WITHSTOOD THE IMPACT WELL.

נו

THE

DOLLAR

SIR PIERS NOTED THAT THE EXCHANGE RATE OF THE HONG KONG AGAINST THE U.S. DOLLAR REMAINED STABLE EVEN DURING THE MONTHS OF

RATES STAYED INTEREST AND JUNE, AND HONG KONG DOLLAR CORRESPONDING U.S. DOLLAR RATES FOR MOST OF THE YEAR.

CLOSE

MAY

TO

"IT IS ABUNDANTLY CLEAR THAT THE LINKED EXCHANGE RATE TO SERVE THE INTERESTS OF HONG KONG," HE STRESSED.

CONTINUES

HE SAID THE MAINTENANCE OF MONETARY STABILITY WAS VITAL TO KONG IN THE RUN UP TO 1997 AND BEYOND. THE TERRITORY NEEDED TO THAT ITS MONETARY SYSTEM COULD SUCCESSFULLY ABSORB SHOCKS.

HONG ENSURE

"WHERE NECESSARY

STRENGTHEN OUR SYSTEM.

AND

APPROPRIATE,

WE WILL

TAKE

ACTION

ΤΟ

EXCHANGE

FUND BILLS, ADDITIONAL MEANS MAINTAINING

"FOR EXAMPLE, THE ISSUE OF SHORT TERM SCHEDULED TO START SHORTLY, WILL PROVIDE US WITH AN OF CONDUCTING THE MONEY MARKET OPERATIONS WHICH ASSIST IN EXCHANGE RATE STABILITY," HE SAID.

PIERS

то

TO DEVELOP AS AN KONG CONTINUED SIR

SAID HONG

THERE INTERNATIONAL FINANCIAL CENTRE DESPITE THE EVENTS LAST YEAR.

OF LICENCES GRANTED WAS A SIGNIFICANT INCREASE IN THE NUMBER FOREIGN BANKS AND BANKING BUSINESS GREW RAPIDLY, INDICATING CONTINUING CONFIDENCE ON THE PART OF THE INTERNATIONAL BANKING COMMUNITY IN PROSPECTS FOR THE HONG KONG ECONOMY.

THE

THREE PER CENT GROWTH IN GDP FORECAST

*

THE

FINANCIAL

SECRETARY,

HON THE

FORECAST A THREE PER CENT GROWTH RATE IN THE (GDP) IN 1990.

SIR

PIERS

JACOBS, TODAY GROSS DOMESTIC PRODUCT

PRICE TERMS,

PRESENTING HIS BUDGET, SIR PIERS SAID IN CURRENT HONG KONG'S PER CAPITA GDP WAS EXPECTED TO RISE TO US$12,100.

"AT THIS LEVEL, OUR PER CAPITA GDP SHOULD CONTINUE TO BE

THE HIGHEST IN THE REGION," HE SAID.

AMONG

SIR PIERS POINTED OUT THAT, OVERALL, THE ECONOMY WAS EXPECTED TO CONTINUE TO GROW ONLY SLOWLY DURING THE FIRST HALF OF THIS YEAR, WITH THE POSSIBILITY OF SOME RECOVERY IN THE SECOND HALF.

HE SAID THAT FOR 1990 AS A WHOLE, THE GROWTH RATE OF THE GDP WAS THE RATE FORECAST TO BE BROADLY SIMILAR TO THAT ACHIEVED IN 1989 AND OF INFLATION WOULD NEVERTHELESS BE SOMEWHAT LOWER.

/"FOR MANY