XN000022-1990-05-25 — Page 2

FRIDAY, MAY 25, 1990

FIRST QUARTER ECONOMIC REPORT 1990 PUBLISHED

ECONOMIC

YEAR

WAS

PERFORMANCE IN THE FIRST QUARTER OF THIS GENERALLY MODEST, ACCORDING TO THE FIRST QUARTER ECONOMIC REPORT 1990.

INCREASE, ALTHOUGH RE-EXPORTS CONTINUED TO SHOW AN APPRECIABLE

REMAINED SLUGGISH. THE BOTH

EXPORTS AND DOMESTIC DEMAND DOMESTIC

OF DEMAND FOR LABOUR HAD BECOME RELATIVELY LESS INTENSE, BUT THE RATE CONSUMER PRICE INFLATION WAS STILL HIGH, THE REPORT SAID.

THE REPORT, WHICH ANALYSES THE ECONOMIC DEVELOPMENTS FIRST QUARTER OF THIS YEAR, WAS PUBLISHED TODAY (FRIDAY).

IN THE

BASIS

THE GOVERNMENT ECONOMIST, MR K.Y. TANG, SAID THAT ON THE OF THIS REPORT AND OTHER RECENT INFORMATION, A REVIEW HAD BEEN MADE OF THE FORECASTS OF THE GROSS DOMESTIC PRODUCT (GDP) AND OF PRICE FOR 1990.

TRENDS

MADE TO

"AS A RESULT OF THIS REVIEW, MINOR ADJUSTMENTS WERE SOME OF THE COMPONENT FORECASTS, BUT THE FORECAST RATES OF INCREASE IN (AT 9 PER THE GDP (AT 3 PER CENT IN REAL TERMS), THE GDP DEFLATOR

REMAINED CENT) CENT), AND THE CONSUMER PRICE INDEX (A) (AT 8.5 PER UNCHANGED FROM THOSE RELEASED WITH THE BUDGET,

||

HE SAID.

"THE UPDATED VIEW REGARDING THE OUTLOOK FOR THE ECONOMY IN 1990

** HE ADDED. WAS THUS LARGELY THE SAME AS THAT IN THE EARLIER FORECAST,

DOMESTIC EXPORTS FELL FURTHER IN THE FIRST QUARTER OF 1990,

1989. ABOUT 5 PER CENT IN REAL TERMS OVER THE SAME QUARTER IN

TO EXPORTS

THE IN DOMESTIC LARGEST DECREASE OCCURRED KINGDOM, FOLLOWED BY THOSE TO JAPAN, DOMESTIC EXPORTS TO THE

RECORDED REPUBLIC OF GERMANY,

CHINA THE UNITED STATES MODERATE DECREASES.

AND

BY

THE

UNITED FEDERAL

MORK

KONG'S

OF

THE UNITED STATES REMAINED THE LARGEST MARKET FOR HONG DOMESTIC EXPORTS, WITH A SHARE OF 29 PER CENT IN THE FIRST QUARTER 1990.

RE-EXPORTS ROSE BY ABOUT 6 PER CENT IN REAL TERMS IN THE QUARTER OVER A YEAR EARLIER.

FIRST

"THIS WAS LARGELY ATTRIBUTABLE TO THE CONTINUED RAPID GROWTH IN RE-EXPORTS OF CHINA ORIGIN, MR TANG SAID.

77

RE-EXPORTS ΤΟ

MARKETS

OTHER THAN

CHINA CONTINUED

TO

RISE

MARKEDLY IN THE FIRST QUARTER.

HOWEVER, RE-EXPORTS TO CHINA DECLINED, BEING AFFECTED MAINLY BY RAPID CHINA'S AUSTERITY PROGRAMME AND TO A LIMITED EXTENT BY THE LESS GROWTH IN OUTWARD PROCESSING ACTIVITIES, HE SAID.

/AS RE-EXPORTS